Cancellation of Subscription Receipts Clause Samples
The 'Cancellation of Subscription Receipts' clause defines the conditions under which subscription receipts issued to investors can be cancelled. Typically, this clause outlines specific events or failures—such as the non-fulfillment of closing conditions or regulatory approvals—after which the receipts are voided and any funds paid by subscribers are returned. Its core practical function is to protect investors by ensuring they are not financially committed if the underlying transaction does not proceed as planned, thereby allocating risk and providing clarity in the event of deal failure.
Cancellation of Subscription Receipts. In the event that (a) a Termination Notice is delivered to the Subscription Receipt Agent, or (b) the Escrow Release Notice is not delivered to the Subscription Receipt Agent at or before the Escrow Release Deadline, then all of the Subscription Receipts shall, without any action on the part of the holders thereof (including the surrender of any Subscription Receipt Certificates or deemed surrender of any Uncertificated Subscription Receipts), be terminated and cancelled by the Subscription Receipt Agent as of the Termination Time and holders of Subscription Receipt Certificates shall thereafter have no rights thereunder except to receive an amount equal to the aggregate Offering Price plus a pro rata share of Earned Interest thereon(less any withholding tax required to be withheld in respect thereof) of the Subscription Receipts held by such Subscription Receiptholder and the Subscription Receipt Agent shall pay to such holders from the Escrowed Funds, an amount equal to the aggregate Offering Price of the Subscription Receipts then held, plus a pro rata share of Earned Interest thereon (less any withholding tax required to be withheld in respect thereof). Such amount (less any withholding tax required to be withheld in respect thereof), shall be returned to each holder of a Subscription Receipt by the Subscription Receipt Agent in accordance with Section 6.4 hereof. The Corporation shall be liable for any shortfall between the amounts owing to Subscription Receiptholders under this Section 2.2(2) and the amount of Escrowed Funds. The Subscription Receipt Agent and the Agents shall have no responsibility for any shortfall owing to the Subscription Receiptholders.
Cancellation of Subscription Receipts. In the event that (a) a Termination Notice is delivered to the Subscription Receipt Agent, or (b) the Escrow Release Notice is not delivered to the Subscription Receipt Agent at or before the Escrow Release Deadline, then all of the Subscription Receipts shall, without any action on the part of the holders thereof (including the surrender of any Subscription Receipt Certificates), be terminated and cancelled by the Subscription Receipt Agent as of the Termination Time and holders of Subscription Receipt Certificates shall thereafter have no rights thereunder except to receive the greater of (i) the aggregate Offering Price for their Subscription Receipts, and (ii) their pro rata share of the Escrowed Funds, less applicable withholding taxes, if any, in accordance with Section 6.4 hereof.
Cancellation of Subscription Receipts. In the event that a Termination Notice is delivered to the Subscription Receipt Agent and the Lead Agent at or before the Escrow Release Deadline, all of the Subscription Receipts shall, without any action on the part of the holders thereof (including the surrender of any Subscription Receipt Certificates), be terminated and cancelled by the Subscription Receipt Agent as of the Termination Time and holders of Subscription Receipts shall thereafter have no rights thereunder except to receive the greater of (i) the aggregate Offering Price for their Subscription Receipts, and (ii) their pro rata share of the Escrowed Funds, less applicable withholding taxes, if any, in accordance with Section 6.4 hereof. To the extent that the Escrowed Funds are insufficient to refund to each Subscription Receiptholder the amounts due to them, the Corporation shall be responsible and liable to the Subscription Receiptholders for any shortfall and shall contribute such amounts as are necessary to satisfy any shortfall such that each Subscription Receiptholder will receive an amount equal to the amounts due to them under Section 6.4(1) hereof.
Cancellation of Subscription Receipts. (a) Effective immediately after the Common Shares have been issued as contemplated in Subsection 3.1(a), the Subscription Receipts relating thereto shall be void and of no value or effect.
Cancellation of Subscription Receipts. All Subscription Receipts in respect of which payment in accordance to Section 3.3(b) is made shall be deemed to have been cancelled on the Termination Date and the Subscription Receipt Agent shall record the deemed cancellation of such Subscription Receipts on the register of the Subscription Receipts upon all such payments having been so paid as aforesaid. Upon written request by the Company, the Subscription Receipt Agent shall furnish the Company with a certificate identifying the Subscription Receipts deemed to have been cancelled. All Subscription Receipts which have been deemed to have been cancelled pursuant to this Section 3.4 shall be without further force and effect whatsoever.
Cancellation of Subscription Receipts. Deposit of Escrowed Proceeds in Escrow The Corporation shall deliver the Escrowed Proceeds to the Subscription Receipt Agent on the Closing Date by way of certified cheque, bank draft or electronic wire transfer in immediately available funds, and upon receipt of such funds, the Subscription Receipt Agent shall deliver a signed receipt acknowledging receipt of the Escrowed Proceeds. The Subscription Receipt Agent shall immediately place such funds in a segregated account in accordance with the provisions of this Article 6. The Corporation acknowledges and agrees that it is a condition of the payment by the holders of Subscription Receipts of the aggregate Offering Price that the Escrowed Funds are held by the Subscription Receipt Agent in accordance with the provisions of this Article 6. The Corporation further acknowledges and confirms that it has no interest in the Escrowed Funds unless and until the Escrow Release Notice is delivered to the Subscription Receipt Agent (at or before the Escrow Release Deadline). The Subscription Receipt Agent shall retain the Escrowed Funds for the benefit of the holders of the Subscription Receipts and, upon the delivery of the Escrow Release Notice to the Subscription Receipt Agent (at or before the Escrow Release Deadline), retroactively for the benefit of the Corporation in accordance with the provisions of this Article 6. The Subscription Receipt Agent shall acknowledge by separate written receipt to the Corporation the receipt and deposit into segregated accounts of $8,200,000 of the Escrowed Proceeds, in accordance with the provisions of this Article 6.
Cancellation of Subscription Receipts. In the event that (a) a Termination Notice is delivered to the Subscription Receipt Agent, or (b) the Escrow Release Notice is not delivered to the Subscription Receipt Agent at or before the Escrow Release Deadline, then all of the Subscription Receipts shall, without any action on the part of the holders thereof (including the surrender of any Subscription Receipt Certificates), be terminated and cancelled by the Subscription Receipt Agent as of the Termination Time and holders of Subscription Receipts shall thereafter have no rights thereunder except that the Escrowed Funds (plus accrued interest earned thereon) shall be returned to Subscription Receiptholders on a pro rata basis, less applicable withholding taxes, if any, in accordance with Section 6.4 hereof. To the extent that the Escrowed Funds (plus accrued interest earned thereon) are not sufficient to refund the aggregate Offering Price paid by the Subscription Receiptholders, the Corporation shall be responsible and liable to contribute such amounts as are necessary to satisfy any shortfall.