SAFE definition
Examples of SAFE in a sentence
If there is an Equity Financing before the termination of this Safe, on the initial closing of such Equity Financing, this Safe will automatically convert into the number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Discount Price.
If an Equity Financing has not occurred on or prior to December 31, 2024, then the Investor shall have the option (but shall not be required) to convert the Safe into the number of shares of Series C Preferred Stock equal to the Purchase Amount divided by $0.5507.
The Investor is purchasing this Safe and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same.
Beginning on January 1, 2025, if the Safe has not been terminated, the Investor can elect to reduce the Purchase Amount by having the Company pay the Investor the Purchase Amount in cash consideration (the “Redemption Right”); provided that if the Investor wishes to exercise its Redemption Right, the Investor shall send written notice to the Company at least forty days prior to the exercise of the Redemption Right (the “Redemption Notice”).
If there is a Dissolution Event before the termination of this Safe, the Investor will automatically be entitled (subject to the liquidation priority set forth in Section 1(e) below) to receive a portion of Proceeds equal to the Cash-Out Amount, due and payable to the Investor immediately prior to the consummation of the Dissolution Event.