Mandatory Conversion at Maturity Sample Clauses
The Mandatory Conversion at Maturity clause requires that, upon reaching the maturity date of a convertible instrument such as a note or bond, the outstanding principal and any accrued interest are automatically converted into equity, typically shares of the issuing company. This conversion occurs regardless of the holder’s preference, and the terms—such as the conversion price or ratio—are predetermined in the agreement. The core function of this clause is to ensure that the debt is resolved by maturity, eliminating the need for repayment in cash and providing certainty for both the issuer and the investor regarding the instrument’s final outcome.
Mandatory Conversion at Maturity. On the Maturity Date, all amounts payable hereunder (except for interest, which is subject to payment in accordance with Section 4.3 of this Note) shall be repaid with shares of the Maker’s Common Stock in accordance with the terms of Section 5.1 of this Note.
Mandatory Conversion at Maturity. On the Maturity Date, all amounts payable hereunder (except for interest, which shall be paid in accordance with Section 5.3 of this Note) shall be paid in shares of the Maker’s Common Stock at a conversion price (the “Mandatory Principal Conversion Price”) equal to the lowest of: (i) $3.75 (the “Closing Price”), (ii) the Listing Price (as defined below), (iii) the Public Offering Price (as defined below), (iv) the Private Offering Price (as defined below), or (v) the Change of Control Price (as defined below). The “Listing Price” means the lower of the opening and closing National Exchange prices (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) on such day that the Maker’s Common Stock is first traded on a National Exchange. The “Public Offering Price” means the price per share (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid by public investors in an underwritten public offering conducted in connection with the Listing, without regard to any underwriting discount or other offering expense. The “Private Offering Price” means the means the lowest price per share (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid by investors in any private equity, equity-linked or debt financing (other than the 2015 Offering) conducted after the date hereof prior to the Listing, without regard to any broker’s fee or other offering expense. The “Change of Control Price” means the per-share consideration (as appropriately adjusted to reflect stock dividends, stock splits, combinations, recapitalizations and the like with respect to the Maker’s capital stock after the date hereof) paid in the Change of Control.
Mandatory Conversion at Maturity. If any Preferred Share remains outstanding on the Maturity Date the Company shall convert such Preferred Share at the Conversion Rate as of the Maturity Date for such Preferred Share without the holder of such Preferred Share being required to give a Conversion Notice on such Maturity Date (a "Maturity Date Mandatory Conversion"). All Preferred Shares which remain outstanding on the Maturity Date shall be converted at the Conversion Rate on such Maturity Date as if such holder of such Preferred Shares had delivered a Conversion Notice with respect to such Preferred Shares on the Maturity Date. Promptly following the Maturity Date, all holders of Preferred Shares shall surrender all Preferred Stock Certificates representing such Preferred Shares, duly endorsed for cancellation, to the Company or the Transfer Agent. The Maturity Date shall be extended for any Preferred Shares for as long as the conversion of such Preferred Shares would violate the provisions of Section 4.
Mandatory Conversion at Maturity. Unless previously converted, or purchased and cancelled, each $25 principal amount of Notes shall be mandatorily converted on the Maturity Date into a number of Settlement Shares determined in accordance with the Relevant Conversion Ratio. On the Settlement Date, the Company shall, in addition, pay any Optionally Outstanding Payments and any other accrued and unpaid interest to, but excluding, the Settlement Date.
Mandatory Conversion at Maturity. Each Note shall automatically convert (unless previously converted at the option of the Holder in accordance with Section 14.01(a), converted at the option of the Company pursuant to an Accelerated Mandatory Conversion, or repurchased at the option of the Holder in accordance with Article 15) on the Maturity Date (subject to postponement as a result of Market Disruption Events) (a “Mandatory Conversion”) at the Conversion Rate per $1,000 principal amount of Notes (subject to, and in accordance with, the settlement provisions of Section 14.02, the “Mandatory Conversion Obligation”).