Exercise of Basic Subscription Right Clause Samples
The 'Exercise of Basic Subscription Right' clause defines the process by which existing shareholders can purchase additional shares in a company, typically during a rights offering. This clause outlines the steps shareholders must follow to exercise their right, such as submitting a subscription form and payment within a specified timeframe, and may detail the number of shares each shareholder is entitled to buy based on their current holdings. Its core function is to ensure that shareholders have a clear and fair opportunity to maintain their proportional ownership in the company, thereby protecting them from dilution when new shares are issued.
Exercise of Basic Subscription Right the Standby Purchaser shall exercise its Basic Subscription Right, in full, and subscribe for all of the Standby Purchaser Rights Offering Shares to which it is entitled to subscribe under its Basic Subscription Right, not less than two Business Days prior to the Rights Closing Date; and
Exercise of Basic Subscription Right. Each Standby Purchaser shall exercise, or shall direct its Affiliates to exercise, its Basic Subscription Right, in full, and subscribe for all of the Standby Purchaser Rights Offering Shares to which it is entitled to subscribe under its Basic Subscription Right, not less than five (5) Business Days prior to the Expiry Date.