Restriction on Additional Subscriptions Sample Clauses
The 'Restriction on Additional Subscriptions' clause limits a party’s ability to acquire or issue further shares, interests, or similar securities beyond what is initially agreed upon. Typically, this clause applies to shareholders or investors in a company, preventing them from subscribing to additional shares without the consent of other parties or outside specific circumstances, such as a new funding round. Its core function is to maintain the agreed ownership structure and prevent dilution or changes in control without proper oversight, thereby protecting the interests of existing stakeholders.
Restriction on Additional Subscriptions. Notwithstanding any part of this Agreement, the Investor shall not be required to subscribe for additional Securities if the Securities to be issued on an applicable Closing, together with Common Shares and other securities convertible into or exercisable for Common Shares beneficially owned (directly or indirectly) by the Investor, would exceed 19.9% of the issued and outstanding Common Shares of the Corporation.