Rights Offering Backstop Commitment Sample Clauses
A Rights Offering Backstop Commitment is a contractual provision in which a party, often an investor or group of investors, agrees to purchase any unsubscribed securities in a rights offering to ensure the issuer raises the targeted amount of capital. In practice, if existing shareholders do not fully exercise their rights to buy new shares, the backstop party steps in to buy the remaining shares, guaranteeing the success of the offering. This clause provides certainty to the issuer that the capital raise will be completed, mitigating the risk of insufficient shareholder participation.
Rights Offering Backstop Commitment. The entry of any RO Backstop Shares to be delivered pursuant to this Section 2.6(c) into the account of a Commitment Party pursuant to the Company’s book entry procedures and delivery to such Commitment Party of an account statement reflecting the book entry of such RO Backstop Shares shall be deemed delivery of such RO Backstop Shares, respectively, for purposes of this Agreement. Notwithstanding anything to the contrary in this Agreement, all Backstop Term Loans and RO Backstop Shares will be delivered with all issue, stamp, transfer, sales and use or similar transfer Taxes or duties that are due and payable (if any) in connection with such delivery duly paid by or on behalf of the Company.
Rights Offering Backstop Commitment. The Company may exercise the Put Option (but if the Company chooses to exercise, it must exercise such Put Option in full with respect to all Commitment Parties) by delivery to each Commitment Party of a written put election notice (the “Put Election”), provided, that the Put Option shall automatically and irrevocably be deemed to have been exercised by the Company, without the need for delivery of written notice or the taking of any other further action by the Company or any other any Person, if and upon such time as the conditions set forth in Section 7.1(d) and Section 7.1(e) shall have been satisfied or waived in accordance with this Agreement.
Rights Offering Backstop Commitment