Telepanel Convertible Securities Clause Samples
The Telepanel Convertible Securities clause defines the terms under which securities issued by Telepanel can be converted into another form of equity, typically common shares. This clause outlines the conversion ratio, timing, and any conditions or restrictions that apply to the conversion process, such as triggering events or required approvals. Its core practical function is to provide investors with flexibility and potential upside by allowing them to convert their securities into equity, while also clarifying the process and protecting both the issuer and the investor from misunderstandings or disputes regarding conversion rights.
Telepanel Convertible Securities. At the Effective Time, after the actions described in sections 1.1(a) and (b), each of the outstanding Telepanel Convertible Securities will, without further action on the part of any holder thereof and by virtue of the terms thereof, be adjusted so as to constitute a convertible security (an "Adjusted Convertible Security") to purchase Exchangeable Shares, at a conversion price per Exchangeable Share, expressed in United States dollars, equal to the conversion price per Telepanel Common Share of such Telepanel Convertible Security immediately prior to the Effective Time, expressed in United States dollars, divided by the number of Exchangeable Shares exchangeable for each Telepanel Common Share pursuant to the Exchange Ratio. The Adjusted Telepanel Convertible Securities will provide that the term, convertibility and all other terms and conditions of the Telepanel Convertible Securities will otherwise continue with respect to the Adjusted Telepanel Convertible Securities, except as contemplated by Section 7.12 hereof.