Standard Preferred Stock definition

Standard Preferred Stock means the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

Standard Preferred Stock means the shares of a series of Preferred Stock issued to the investorsinvesting new money in the Company in connection with the initial closing of the Equity Financing.

Standard Preferred Stock means the shares of a series of Preferred Stock issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the shares of Financing Preferred Stock, except that such series will have no voting rights, other than required by law.

Examples of Standard Preferred Stock in a sentence

• The Investor shall have the right to purchase its pro rata share of Standard Preferred Stock being sold in the Equity Financing (the “Pro Rata Right”).

• Safe Preferred Stock will have the same rights, privileges, preferences and obligations as Standard Preferred Stock, but the liquidation preference, conversion price, and dividend rate will be calculated based on the price per share of the Safe Preferred Stock.

• This is a safe with a negotiated Discount Rate, e.g., a 20% discount off the price per share of the Standard Preferred Stock, applied to the conversion of this safe into shares of Safe Preferred Stock.

• 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 greater of: (1) the number of shares of Standard Preferred Stock equal to the Purchase Amount divided by the lowest price per share of the Standard Preferred Stock; or (2) the number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Safe Price.

• The Discount Price means the price per share of the Standard Preferred Stock sold in the equity financing multiplied by the Discount Rate.

• As noted above, the safe provides that the safe holder will get the benefit of applying the Post-Money Valuation Cap or receive shares of Standard Preferred Stock at the same price per share paid by the new money investors, whichever results in a greater number of shares.

• If the Equity Financing valuation does not sufficiently exceed the safe’s Post-Money Valuation Cap, then the safe holder will receive shares of Standard Preferred Stock at the lower price per share paid by the new money investors.

• Safe Preferred Stock has the same rights, privileges, preferences and obligations as the Standard Preferred Stock, but the liquidation preference, conversion price, and dividend rate are calculated based on the price per share of the Safe Preferred Stock (which is determined by dividing the Post-Money Valuation Cap by the “Company Capitalization” (described below)).

• Standard Preferred Stock is the same preferred stock issued to new money investors in the Equity Financing.

• In these situations, the safe holder will receive shares of the Standard Preferred Stock (described in further detail below) at the same price per share paid by the new money investors.

More Definitions of Standard Preferred Stock

Standard Preferred Stock means (i) with respect to a Company that is a corporation at the time of the Equity Financing, the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing, or (ii) with respect to a Company that is a limited liability company at the time of the Equity Financing, the shares of the series of Preferred Stock issued as a result of the Incorporation Event to holders of the Preferred Securities which were issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

Standard Preferred Stock means the shares of a series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing. ”MFN Amendment Provision” If the Company issues any Subsequent Convertible Securities prior to termination of this Safe, the Company will promptly provide the Investor with written notice thereof, together with a copy of all documentation relating to such Subsequent Convertible Securities and, upon written request of the Investor, any additional information to such Subsequent Convertible Securities as may be reasonably requested by the Investor. In the event the Investor determines that the terms of the Subsequent Convertible Securities are preferable to the terms of this instrument, the Investor will notify the Company in writing. Promptly after receipt of such written notice from the Investor, the Company agrees to amend and restate this instrument to be identical to the instrument(s) evidencing the Subsequent Convertible Securities.