Adjustment to Exercise Price and Number of Warrant Shares. In case the shares of Common Stock at any time outstanding shall be subdivided into a greater or combined into a lesser number of shares of Common Stock, by stock-split, reverse split or otherwise, or in case shares of Common Stock shall be issued as a stock dividend, the Exercise Price shall be increased or decreased, as applicable, to an amount which shall bear the same relation to the Exercise Price in effect immediately prior to such subdivision, combination or stock dividend as the total number of shares of Common Stock outstanding immediately prior to such subdivision, combination or stock dividend shall bear to the total number of shares of Common Stock outstanding immediately after such subdivision, combination or stock dividend; likewise, in case of such subdivision, combination or stock dividend, the number of Warrant Shares shall be increased or decreased as applicable, to the number which shall bear the same relation to the number of Warrant Shares obtainable hereunder immediately prior to such event, as the total number of shares of Common Stock outstanding immediately after such event shall bear to the total number of shares of Common Stock outstanding immediately prior to such event. An adjustment made pursuant to this subparagraph 4(a) shall become effective immediately after the effective date of such subdivision, combination or stock dividend retroactive to the record date, if any, for such subdivision, combination or stock dividend.
Appears in 2 contracts
Sources: Warrant to Purchase Stock (Transnational Financial Network Inc), Warrant Agreement (NexGen Steel, Inc.)
Adjustment to Exercise Price and Number of Warrant Shares. In case the shares of Common Stock at any time outstanding shall be subdivided into a greater or combined into a lesser number of shares of Common Stock, by stock-split, reverse split or otherwise, or in case shares of Common Stock shall be issued as a stock dividend, the Exercise Price shall be increased or decreased, as applicable, to an amount which shall bear the same relation to the Exercise Price in effect immediately prior to such subdivision, combination or stock dividend as the total number of shares of Common Stock outstanding immediately prior to such subdivision, combination or stock dividend shall bear to the total number of shares of Common Stock outstanding immediately after such subdivision, combination or stock dividend; likewise, in case of such a subdivision, combination or stock dividend, the number of Warrant Shares shall be increased or decreased as applicable, to the number which shall bear the same relation to the number of Warrant Shares obtainable hereunder immediately prior to such event, as the total number of shares of Common Stock outstanding immediately after such event shall bear to the total number of shares of Common Stock outstanding immediately prior to such event. An adjustment made pursuant to this subparagraph 4(a) shall become effective immediately after the effective date of such subdivision, combination or stock dividend retroactive to the record date, if any, for such subdivision, combination or stock dividend.
Appears in 1 contract