Issuance of Additional Common Shares. If at any time the Company shall issue or sell any Additional Common Shares for consideration in an amount per Additional Common Share less than the Market Price as of the day of such issuance or sale, then (A) the number of shares of Common Stock for which this Warrant is exercisable shall be increased to equal the product obtained by multiplying the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such issuance or sale by a fraction (x) the numerator of which shall be the number of shares of Common Stock outstanding immediately after such issuance or sale and (y) the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issuance or sale plus the number of shares which the aggregate offering price of the total number of such Additional Common Shares would purchase at the Market Price (on the last trading day immediately preceding such issuance or sale) and (B) the Current Warrant Price shall be reduced to a price determined by multiplying such Current Warrant Price by a fraction (x) the numerator of which shall be the number of shares for which this Warrant is exercisable immediately prior to such issue or sale and (y) the denominator of which shall be the number of shares of Common Stock purchasable immediately after such issuance or sale.
Appears in 2 contracts
Sources: Common Stock Purchase Warrant (Idt Venture Capital Corp), Common Stock Purchase Warrant (Document Security Systems Inc)