Conversion Antidilution Prepayment Sample Clauses

The "Conversion; Antidilution; Prepayment" clause governs how certain securities, such as convertible notes or preferred shares, can be converted into other forms of equity, and how their value is protected against dilution from future issuances. It typically outlines the process and terms under which holders may convert their securities, details adjustments to conversion rates if new shares are issued at lower prices (antidilution protection), and specifies whether and how the issuer can repay or prepay the securities before maturity. This clause is essential for protecting investors from losing value due to future financing rounds and for providing clear mechanisms for conversion and repayment, thereby reducing uncertainty and potential disputes.