Par Value Reduction definition
Examples of Par Value Reduction in a sentence
Following the Par Value Reduction, before taking any action that would cause an adjustment pursuant to Section 6 hereof reducing the portion of the Exercise Price required to purchase one share of its share capital below the then par value (if any) of a share of such capital stock, the Company will take any corporate action which, in the opinion of its counsel, may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such share capital.
The Company will not take any action to increase such par value above the Exercise Price once the Par Value Reduction has occurred.
The Proposed Par Value Reduction, Proposed Revised Rights Issue with Warrants, Proposed Revised Acquisition, Proposed Revised Amendments and Proposed Revised Increase in Authorised Share Capital are inter-conditional upon one another.
Following the Par Value Reduction, before taking any action that would cause an adjustment pursuant to Section 6 hereof reducing the portion of the Exercise Price required to purchase one share of its share capital below the then par value (if any) of a share of such share capital, the Company will take any corporate action which, in the opinion of its counsel, may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such share capital.
In the event the par value of Comprehensive’s Common Stock is reduced to less than one cent ($.01) (the “Par Value Reduction”), then, effective upon the Par Value Reduction, the reference to “one cent ($.01)” in the initial sentence of this paragraph shall instead be the reduced par value amount but not less than one-half of one cent ($.005), subject to adjustment as provided for in Section 2 of the Debentures.