Initial Conversion Price Clause Samples
The Initial Conversion Price clause defines the price at which convertible securities, such as convertible notes or preferred shares, can first be converted into common equity of the company. Typically, this price is set at the time of issuance and may be based on a fixed dollar amount per share or determined by a formula tied to the company's valuation. By establishing a clear conversion price from the outset, this clause provides certainty to both investors and the company regarding the terms of conversion, thereby reducing ambiguity and potential disputes over equity ownership in the future.
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Initial Conversion Price. The “Conversion Price” shall mean the applicable conversion price for the respective Preferred Share to convert into Common Share(s) at the option of the holder thereof or automatically pursuant to Article 6A(iii)(4)(a) or Article 6A(iii)(4)(b), as the case may be. The Conversion Price for the Class A Preferred Shares, the Series A Preferred Shares, the Series B Preferred Shares, the Series C Preferred Shares, the Series D Preferred Shares and the Series E Preferred Shares shall initially be the Original Class A Issue Price, the Original Series A Preferred Issue Price, the Original Series B Preferred Issue Price, the Original Series C Preferred Issue Price, the Original Series D Preferred Issue Price and the Original Series E Preferred Issue Price, respectively, and each shall be adjusted from time to time as provided below in Article 6A(iii)(4)(e). For the avoidance of doubt, the initial conversion ratio for each Preferred Share to Common Share(s) shall be 1:1, subject to adjustment from time to time of the Conversion Price as provided below in Article 6A(iii)(4)(e).
Initial Conversion Price. The Conversion Price on the date of original issue of this Note is $0.20.
Initial Conversion Price. The “Series A-1 Conversion Price” shall initially equal the Original Series A-1 Issue Price, the “Series A-2 Conversion Price” shall initially equal the Original Series A-2 Issue Price, the “Series A-3 Conversion Price” shall initially equal the Original Series A-3 Issue Price, the “Series B Conversion Price” shall initially equal the Original Series B Issue Price and the “Series C Conversion Price” shall initially equal the Original Series C Issue Price, each of which shall be adjusted from time to time as provided below in Clause 9(d)(v).
Initial Conversion Price. The “Conversion Price” shall be $0.02 per share (as adjusted for stock splits, stock combinations and similar events).
Initial Conversion Price. The Note shall be convertible at the rate of one share of common stock for each $16.10 of principal converted.
Initial Conversion Price. The initial Conversion Price shall be $8.71 ------------------------ per share of Common Stock. The Conversion Price shall be subject to adjustment as hereinafter provided.
Initial Conversion Price. The “Series A Conversion Price” shall initially equal the Original Series A Issue Price, and shall be adjusted from time to time as provided below in Section 4(e) of Schedule A.
Initial Conversion Price. Subject to adjustments pursuant to Sections 5 and 7, this Debenture will have a conversion price (the "Conversion Price") equal to 90.0% of the average of the Closing Bid Price for each of the ten (10) Trading Days immediately following, but not including, the Closing Date (such ten (10) Trading Day average being referred to as the "Closing Price"). The Holder shall deliver a notice to the Company on the eleventh Trading Day immediately following the Closing Date setting forth the calculation of the Conversion Price, which calculation shall be binding upon the Company absent manifest error in such calculation.
Initial Conversion Price. 4 Interest...................................................................................4
Initial Conversion Price. The initial Conversion Price at which each Common Share shall be issued upon conversion of the Series A Preferred Shares shall be the amount in Won equivalent to US$2.7747 (applying the Basic Exchange Rate on the date immediately preceding the issuance date) unless the adjustment of the Conversion Price is warranted as set forth herein. Subject to other adjustments of the Conversion Price, the Conversion Price shall be changed, beginning on March 31, 2004, to a price (calculated to three decimal places) determined by multiplying then applicable Conversion Price by a fraction (A) the numerator of which shall be (x) the actual gross revenue of the Company for the period beginning on April 1, 2003 and ending on March 31, 2004 (the “Financial Year”) minus (y) any discounts, rebates, returns or allowances granted to customers (at the weighted average KRW/$ exchange rate calculated based on the exchange rate at the last calendar day of each calendar month during the Financial Year); and (B) the denominator of which shall be the financial target of US$20,000,000 for the Financial Year; provided, however, that if the Conversion Price is calculated to be a price less than the amount in Won equivalent to US$1.38735 (applying the Basic Exchange Rate on the date immediately preceding the issuance date) pursuant to the foregoing formula, the Conversion Price shall be changed to the amount in Won equivalent to US$1.38735 (applying the Basic Exchange Rate on the date immediately preceding the issuance date), and if the Conversion Price is calculated to be a price more than the amount in Won equivalent to US$3.32964 (applying the Basic Exchange Rate on the date immediately preceding the issuance date) pursuant to the foregoing formula, the Conversion Price shall be changed to the amount in Won equivalent to US$3.32964 (applying the Basic Exchange Rate on the date immediately preceding the issuance date); and provided, further, that if the Net Operating Cash Deficit for the Financial Year exceeds the amount in Won equivalent to US$3,000,000, the Conversion Price shall be automatically changed to the amount in Won equivalent to US$1.38735 (applying the Basic Exchange Rate on the date immediately preceding the issuance date).