DS-SEDA-01 Sample Clauses

The DS-SEDA-01 clause establishes the terms and conditions for a Standby Equity Distribution Agreement (SEDA) between a company and an investor. Under this clause, the company is granted the right to periodically sell newly issued shares to the investor at a pre-agreed price or formula, typically in exchange for immediate capital. This mechanism allows the company to access funding as needed without committing to a fixed schedule or amount, providing financial flexibility and supporting ongoing operational or growth needs. The core function of this clause is to facilitate efficient capital raising while minimizing dilution and market disruption.