Warrant Coverage Value definition
Warrant Coverage Value means a value of $.125 for each 100% of Warrant Coverage. For purposes of example only, and not by way of limitation, if the Warrant Coverage for the Notes is 200%, the Warrant Coverage Value would be $.25 (i.e., 200% multiplied by $.125 equals $.25). For each $1.00 in principal amount of a Note issued in the Exchange, the Company will issue the Note holder Warrants to purchase .3896 shares of Common Stock exercisable commencing six months after the issuance of the Warrants for a period terminating three years after issuance of the Warrants at an exercise price equal to the Market Value of the Company’s Common Stock immediately preceding the entering into of this Agreement. The shares of Common Stock issuable pursuant to Section 1.01(a) above, upon conversion of the Notes (the “Note Shares”) and upon exercise of the Warrants (the “Warrant Shares”) are collectively referred to herein as the “Securities.”
Warrant Coverage Value means a value of $.125 for each share of Common Stock purchasable upon the exercise of any warrants associated with the transaction pursuant to which the Preferred Shares are issued, as determined in accordance with applicable Nasdaq rules. Nasdaq sets this value based on the maximum potential warrant coverage associated with the transaction pursuant to which the Preferred Shares are issued. For purposes of example only, and not by way of limitation, if the maximum potential warrant coverage associated with the transaction pursuant to which the Preferred Shares are issued is 200%, the Warrant Coverage Value would be $.25 (i.e., 200% multiplied by $.125 equals $.25).