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Common use of Conversion Price Adjustments Clause in Contracts

Conversion Price Adjustments. 4.1 If, at any time when any Series 2 Note Obligation Amount remains outstanding hereunder: (a) the Company effects a subdivision of the outstanding Common Stock, or shall declare a dividend payable on the Common Stock in additional shares of Common Stock, then the Maturity Conversion Price, as in effect immediately before such subdivision or dividend, shall be decreased in inverse proportion to the increase in the aggregate number of outstanding shares of Common Stock resulting from such subdivision or dividend; and (b) the Company combines the outstanding shares of Common Stock, then the Maturity Conversion Price, as in effect immediately before such combination, shall be increased in inverse proportion to the decrease in the aggregate number of outstanding shares of Common Stock resulting from such combination. 4.2 If, at any time prior to the full conversion of the Series 2 Note Obligation Amount into Conversion Shares hereunder, the Company effects a dividend or other distribution of cash or other assets to the holders of the Common Stock (other than a dividend payable in additional shares of Common Stock), then the Maturity Conversion Price, as in effect immediately before such distribution, shall be decreased by an amount equal to the per share value of the cash or assets so distributed. In the event that such per share value is not readily identifiable, it shall be determined by the Company acting in good faith.

Appears in 4 contracts

Samples: Unsecured Convertible Senior Notes (Ivanhoe Electric Inc.), Unsecured Convertible Senior Notes (Ivanhoe Electric Inc.), Convertible Promissory Note (Ivanhoe Electric Inc.)