Sentences with phrase «preference for a liquidation»

We feel more comfortable that Salvatore Muoio is keeping an eye on management's exploration of strategic alternatives and has expressed his strong preference for a liquidation.

LLC annexed to his 13D filing the following letter setting out his preference for a liquidation over a merger:

Not exact matches

Typically, a liquidation preference is designed to protect an investor's monetary investment in a situation where, for whatever reason, the proceeds of a liquidation to be distributed to all investors are less than the amount of the investors» original investment.

The alternative is to give investors 1,2 & 3 the exact same amount of preferred Series A stock and give investors 1 & 2 more common stock (which doesn't have liquidation preferences) to adjust for the discount.

The pay - to - play provision impacts the economics of the deal by reducing liquidation preferences for the non-participating investors.

There is also the potential for the development of a secondary trading market and investors have also enjoyed an overall increase in full participating liquidation preferences.

Common equity classes are considered to be a call option with a claim on equity value at an exercise price equal to the aggregate liquidation preferences for the preferred equity classes.

With a normal 1x liquidation preference this investor would be entitled to $ 500,000 if you sell your company one day for less than $ 5 million (if you sell for more they would rather take their % ownership than the liquidation preference, which is basically downside protection)

«Financing Conversion Securities» means securities with identical rights, privileges, preferences and restrictions as the Qualified Financing Securities issued to new investors in a Qualified Financing, other than (A) the per share liquidation preference, which will be equal to (i) the Note Conversion Price at which this Note is converted, multiplied by (ii) any liquidation preference multiple granted to the Qualified Financing Securities (i.e., 1X, 2X, etc. of the purchase price), (B) the conversion price for purposes of price - based anti-dilution protection, which will equal the Note Conversion Price, and (C) the basis for any dividend rights, which will be based on the Note Conversion Price.

After payment of the full liquidation preference of the Series A, Series A-1, Series B, and Series C, the entire remaining amounts legally available for distribution will be distributed to the holders of our common stock pro rata based on the number of shares held by each holder.

The liquidation preference for Series A, Series A-1, Series B, and Series C is based on the original issue price per share.

(Jan. 2010) This course reviews key concepts of private preferred stock equity investment deals including pricing & deal economics; investor control & governance; and terms for monitoring & preserving the investment, maintaining & increasing ownership, and liquidation preferences.

For example, if a founder contributes a significant amount of cash (i.e. enough to buy a car) to fund the company, then I might suggest that the company issue preferred stock with a liquidation preference and no other rights to the founder, as opposed to issuing common stock.

Assuming the Series B is sold at $ 2 per share and the Series A was sold at $ 1 per share, the Series B investor typically would not want to pay $ 2 per share for a Series A stock with price - based rights (i.e. liquidation preference) at $ 1 per share.

For example, if the merger consideration is $ 20M, the holders of Series A would receive $ 1.50 / share, or an aggregate of $ 15M (which represents the $ 10M liquidation preference and $ 5M of participation with the common), and the holders of common would receive $ 0.50 / share, or an aggregate of $ 5M.

If the company is sold for $ 10M to $ 20M, the holders of Series A would still receive $ 1.00 / share as a rational Series A holder would never convert his / her shares to common as the Series A holder would receive more from the Series A liquidation preference than as a holder of common.

For example, one might interpret this to mean that price - based provisions (such as liquidation preferences) would be upgraded.

This course also reviews key concepts of private preferred stock equity investment deals including pricing & deal economics; investor control & governance; and terms for monitoring & preserving the investment, maintaining & increasing ownership, and liquidation preferences.