Conversion Rate for the Conversion Stock Clause Samples
The "Conversion Rate for the Conversion Stock" clause defines the specific ratio or formula by which convertible securities, such as convertible notes or preferred shares, are exchanged for common stock upon a triggering event, like a financing round or company sale. This clause typically outlines how many shares of common stock an investor will receive for each unit of the convertible security, and may include adjustments for stock splits, dividends, or other corporate actions. Its core practical function is to ensure transparency and fairness in the conversion process, protecting both the company and investors by clearly establishing the terms under which conversion occurs and preventing disputes over share allocation.
Conversion Rate for the Conversion Stock. The number of shares of Conversion Stock issued pursuant to the Note Conversion shall be calculated by dividing seven million eighty nine thousand three hundred twelve dollars ($7,089,312) by three dollar and fifty cents ($3.50) (the “Conversion Rate”). No fractional shares of the Company’s common stock will be issued upon the Note Conversion. In lieu of any fractional share to which the Investors would otherwise be entitled, the Company will pay to the Investors in cash the amount of that would otherwise be converted into such fractional share.
Conversion Rate for the Conversion Stock. The number of shares of Conversion Stock issued pursuant to the Loan Conversion shall be calculated by dividing two million dollars ($2,000,000.00) by three dollar and fifty cents ($3.50) (the “Conversion Rate”). No fractional shares of the Company’s common stock will be issued upon the Loan Conversion. In lieu of any fractional share to which the Investor would otherwise be entitled, the Company will pay to the Investor in cash the amount of that would otherwise be converted into such fractional share.