Common use of Future Dilution Clause in Contracts

Future Dilution. If the price per share of the Company’s Common Stock at the time of exercise or conversion of any preferred stock, warrants, options, convertible subordinated debt, or any other convertible securities (collectively, “Convertible Securities”), including all of the Convertible Securities set forth in the Company’s SEC Filings, is in excess of the various exercise or conversion prices of such Convertible Securities, exercise or conversion of such Convertible Securities would have a dilutive effect on the Company’s Common Stock. The amount of such dilution, however, cannot currently be determined as it would depend on the difference between the stock price and the price at which the Convertible Securities were exercised or converted at the time of such exercise or conversion.

Appears in 2 contracts

Sources: Subscription Agreement (Akorn Inc), Consent and Agreement of Holders of Series a 6.0% Participating Convertible Preferred Stock (Akorn Inc)