Standard Anti-Dilution Protection definition
Standard Anti-Dilution Protection means if at any time the Company shall (i) pay a dividend or make a distribution on its shares of capital stock or Securities ("Shares") in Shares (other than cash dividends or distributions out of surplus or earnings); (ii) subdivide, reclassify or recapitalize its outstanding Shares into a greater number of Shares; or (iii) combine, reclassify or recapitalize its outstanding Shares into a smaller number of Shares, the exercise price of any warrant, that is exercisable into Shares ("Warrant Shares"), in effect at the time of the record date of such subdivision, combination, reclassification or recapitalization shall be proportionately adjusted, and so that the warrant .holder shall be entitled to receive the aggregate number and kind of Shares which, if the warrant had been exercised in full immediately prior to such time, he would have owned upon such exercise and been entitled to receive upon such dividend, subdivision, combination, reclassification or recapitalization, whenever the exercise price payable upon exercise of such warrant is adjusted pursuant to this paragraph, the number of Warrant Shares shall simultaneously be adjusted by multiplying the number of Warrant Shares initially issuable upon exercise of each warrant by the exercise price in effect on the date thereof and dividing the product so obtained by the exercise price, as adjusted. Such adjustment shall be made successively whenever any event such as described in this paragraph shall occur. The form of warrant need not be changed because of any adjustments in the exercise price or the number or kind of the Warrant Shares, however accurate adjustments shall be kept in the official records of the Company.
Examples of Standard Anti-Dilution Protection in a sentence
All stock and warrants paid to BPC as consideration for a Capital Infusion Transaction will carry Standard Anti-Dilution Protection (as defined below).