7Public Offering Clause Samples

The 'Public Offering' clause defines the terms and conditions under which securities or interests covered by the agreement may be offered to the public. Typically, this clause outlines the requirements for compliance with applicable securities laws, the process for registering the offering with regulatory authorities, and any restrictions or obligations imposed on the parties during the offering process. For example, it may specify notification procedures, disclosure obligations, or limitations on timing and marketing activities. The core function of this clause is to ensure that any public offering is conducted legally and transparently, thereby protecting both the parties involved and potential investors from regulatory or financial risks.
7Public Offering. The right to purchase the Repurchased Units pursuant to this Section 1.6 shall terminate upon consummation of any sale of equity securities of the Company pursuant to a firm commitment underwritten offering (or series of related offerings) by the Company (or any successor entity) to the public pursuant to an effective registration statement under the Securities Act, which is underwritten by a nationally recognized investment bank.