Arbitrary Offering Price definition
Arbitrary Offering Price. There has been no prior public market for the Company's securities. The price to the public of the Shares offered hereby has been arbitrarily determined by the Company and bears no relationship to the Company's earnings, book value or any other recognized criteria of value. Immediate and Substantial Dilution. An investor in this offering will experience immediate and substantial dilution. Lack of Prior Market for Securities of the Company. No prior market has existed for the securities being offered hereby and no assurance can be given that a market will develop subsequent to this Offering.
Arbitrary Offering Price. The Company's management arbitrarily determined the sales price for the Shares offered hereby. The offering price is not based on the Company's assets, book value, or earnings. Accordingly, the offering price should not be considered as an indication of the actual fair market value of the Common Stock.
Arbitrary Offering Price. The offering price of the Units has been determined by the General Partner based upon valuation of the Business conducted by an independent third party and a related initial valuation of the Partnership based on various assumptions that may or may not occur. A copy of this valuation will be made available on request. The offering price of the Units is not, however, necessarily indicative of their value, if any, and no assurance can be given that the Units, if and when transferable, could be sold for the offering price or for any amount. Limitation of General Partner's Liability and Indemnification. The Partnership Agreement provides that the General Partner will not be liable to the Partnership or to any Partner for errors in judgment or other acts or omissions in connection with the Partnership, except for those involving willful misconduct or gross negligence. Therefore, the Limited Partners may have a more limited right of action against the General Partner in the event of its misfeasance or malfeasance than they would have absent the limitations in the Partnership Agreement. In the opinion of the SEC, indemnification for liabilities arising out of the Securities Act is contrary to public policy and therefore is unenforceable.
Examples of Arbitrary Offering Price in a sentence
Arbitrary Offering Price of Units The offering price of the Units has been determined by the Company and does not bear any relationship to the Company's assets, book value, potential earnings or any other recognized criteria of value.
For additional information regarding the factors considered in determining the offering price of the Shares, see "Risk Factors - Arbitrary Offering Price",.