Revised Conversion Price Clause Samples
The Revised Conversion Price clause defines the adjusted price at which convertible securities, such as convertible notes or preferred shares, can be converted into common equity following certain events. Typically, this clause is triggered by occurrences like subsequent financing rounds, stock splits, or anti-dilution adjustments, which may affect the original conversion terms. By recalculating the conversion price under specified conditions, the clause ensures that early investors are protected from dilution and that the conversion terms remain fair and equitable in light of changes to the company’s capital structure.
Revised Conversion Price. Pursuant to Section 7(i) of the Note, Section 4(b) of the Note is hereby amended so that, as amended, Section 4(b) of the Note reads as follows:
Revised Conversion Price. The Conversion Price of US$0.20 (or approximately S$0.29 based on an exchange rate of US$1: S$1.4503) represents a premium of approximately 92.1% to the volume-weighted average price of S$0.151 per Share, for the trades done on the SGX-ST for the full market day on 3 January 2017, being the last traded day prior to the date of signing of the Second Supplemental Agreement. The Conversion Price remains subject to adjustments under certain circumstances provided for in the Loan Agreement. Such circumstances include, without limitation, consolidation or subdivision of Shares, capitalisation issues, rights issue and certain capital distribution exercise conducted by the Company. Any such adjustments shall (unless otherwise provided under the Section B: Rules of Catalist of the Listing Manual of the SGX-ST from time to time) be announced by the Company.