Nasdaq 20% Rule: Conversion and Exercise Price Floors | Practical Law

Nasdaq 20% Rule: Conversion and Exercise Price Floors | Practical Law

Standard Clauses that can be used as sample contractual language when structuring a securities transaction with conversion or exercise price floors to avoid or defer stockholder approval required by Nasdaq's 20% rule. These Standard Clauses can be used as a starting point in drafting provisions in convertible notes, preferred stock certificates of designation, warrants, and securities purchase agreements. These Standard Clauses have integrated notes with important explanations and drafting tips.

Nasdaq 20% Rule: Conversion and Exercise Price Floors

Practical Law Standard Clauses w-020-4485 (Approx. 4 pages)

Nasdaq 20% Rule: Conversion and Exercise Price Floors

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
Standard Clauses that can be used as sample contractual language when structuring a securities transaction with conversion or exercise price floors to avoid or defer stockholder approval required by Nasdaq's 20% rule. These Standard Clauses can be used as a starting point in drafting provisions in convertible notes, preferred stock certificates of designation, warrants, and securities purchase agreements. These Standard Clauses have integrated notes with important explanations and drafting tips.