Beneficial Ownership Limitation Percentage Sample Clauses
The Beneficial Ownership Limitation Percentage clause sets a maximum threshold on the percentage of a company's securities that a single investor or group can beneficially own at any given time. In practice, this clause is often used in convertible securities or warrant agreements to prevent an investor from acquiring more than a specified percentage—commonly 4.99% or 9.99%—of the company's outstanding shares, either through conversion or exercise. This limitation helps issuers avoid triggering regulatory requirements or change-of-control provisions, and it protects both the company and investors from unintended consequences related to excessive ownership concentration.
Beneficial Ownership Limitation Percentage. The “Beneficial Ownership Limitation” shall be 19.8% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant and in respect of which an Exercise Notice has been issued.