Common use of Acknowledgement of Dilution Clause in Contracts

Acknowledgement of Dilution. The Company acknowledges that the issuance of the Conversion Shares upon conversion of the Debentures and the issuance of the Warrant Shares upon exercise of the Warrants may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Debentures in accordance with the terms of the Debentures, and to issue Warrant Shares upon exercise of the Warrants in accordance with the terms of the Warrants, is unconditional (other than with respect to the conditions set forth in the Debentures and the Warrants, respectively) regardless of the effect of any such dilution.

Appears in 2 contracts

Samples: Securities Purchase Agreement (Bookham, Inc.), Securities Purchase Agreement (Vyteris Holdings (Nevada), Inc.)

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Acknowledgement of Dilution. The Company acknowledges that the issuance of the Conversion Shares upon conversion of the Debentures Notes and the issuance of the Warrant Shares upon exercise of the Warrants may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Debentures Notes in accordance with the terms of the DebenturesNotes, and to issue Warrant Shares upon exercise of the Warrants in accordance with the terms of the Warrants, is unconditional (other than with respect to the conditions set forth in the Debentures Notes and the Warrants, respectively) regardless of the effect of any such dilution.

Appears in 2 contracts

Samples: Note Purchase Agreement (SkyShop Logistics, Inc.), Note Purchase Agreement (SkyPostal Networks, Inc.)

Acknowledgement of Dilution. The Company acknowledges that the issuance of the Conversion Shares upon conversion of the Debentures Notes and the issuance of the Warrant Shares upon exercise of the Warrants may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Debentures Notes in accordance with the terms of the DebenturesNotes, and to issue Warrant Shares upon exercise of the Warrants in accordance with the terms of the Warrants, is unconditional (other than with respect to the conditions set forth in the Debentures Notes and the Warrants, respectively) regardless of the effect of any such dilution. The Company further acknowledges that, to the extent not otherwise prohibited by applicable law and the terms of this Agreement, each Investor may enter into hedging transactions with respect to the Common Stock.

Appears in 1 contract

Samples: Securities Purchase Agreement (Zap)

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Acknowledgement of Dilution. The Company acknowledges that the issuance of the Conversion Shares upon conversion of the Debentures Convertible Note and the issuance of the Warrant Shares upon exercise of the Warrants Warrant may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Debentures Convertible Note in accordance with the terms of the DebenturesConvertible Note, and to issue Warrant Shares upon exercise of the Warrants Warrant in accordance with the terms of the WarrantsWarrant, is unconditional (other than with respect to the conditions set forth in the Debentures Convertible Note and the WarrantsWarrant, respectively) regardless of the effect of any such dilution. The Company further acknowledges that, to the extent not otherwise prohibited by applicable law, each Holder may enter into hedging transactions with respect to the Common Stock.

Appears in 1 contract

Samples: Securities Purchase and Loan Agreement (Manaris Corp)

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