Equity Conditions Failure definition: Copy, customize and use instantly
Introduction
The term “Equity Conditions Failure” refers to a situation where an entity fails to meet the required equity-related conditions set forth in an agreement. These conditions often include minimum stock price levels, trading volume thresholds, regulatory approvals, or financial covenants necessary for issuing, converting, or transacting in equity securities. Equity Conditions Failure is crucial in contractual agreements as it determines whether certain equity-related actions, such as warrant exercises, debt conversions, or financing arrangements, can proceed. Failure to meet these conditions can restrict transactions, impact investor rights, and affect corporate financing strategies.
Below are various examples of how “Equity Conditions Failure” can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of “Equity Conditions Failure” for conversion restrictions
This definition links Equity Conditions Failure to conversion limitations.
"Equity Conditions Failure" means the failure to satisfy the equity conditions required for the conversion of a security into shares, preventing the holder from exercising conversion rights.
Definition of “Equity Conditions Failure” for financing agreements
This definition ties Equity Conditions Failure to financing terms.
"Equity Conditions Failure" refers to the inability to meet the equity conditions necessary for securing or maintaining financing, resulting in a default or modification of financial terms.
Definition of “Equity Conditions Failure” for stock issuances
This definition connects Equity Conditions Failure to stock issuance limitations.
"Equity Conditions Failure" means the failure to meet the conditions required for issuing additional shares, restricting the issuer from raising capital through equity offerings.
Definition of “Equity Conditions Failure” for price maintenance requirements
This definition applies Equity Conditions Failure to minimum price requirements.
"Equity Conditions Failure" means that the issuer's stock price has fallen below the minimum required level, triggering restrictions on equity-based transactions.
Definition of “Equity Conditions Failure” for warrant exercises
This definition links Equity Conditions Failure to warrant exercise limitations.
"Equity Conditions Failure" means the failure to meet the equity conditions necessary for a holder to exercise warrants, preventing the issuance of shares upon exercise.
Definition of “Equity Conditions Failure” for listing compliance
This definition ties Equity Conditions Failure to stock exchange requirements.
"Equity Conditions Failure" refers to the issuer’s failure to satisfy the listing requirements of a stock exchange, affecting the ability to issue or trade securities.
Definition of “Equity Conditions Failure” for liquidity requirements
This definition connects Equity Conditions Failure to market liquidity conditions.
"Equity Conditions Failure" means that the issuer’s shares do not meet the minimum liquidity threshold, restricting equity-related transactions.
Definition of “Equity Conditions Failure” for debt conversions
This definition applies Equity Conditions Failure to debt conversion scenarios.
"Equity Conditions Failure" means the failure to satisfy the conditions necessary for converting debt into equity, preventing creditors from receiving shares in lieu of repayment.
Definition of “Equity Conditions Failure” for regulatory compliance
This definition links Equity Conditions Failure to regulatory approval.
"Equity Conditions Failure" means the failure to obtain required regulatory approvals, restricting the issuance or conversion of equity securities.
Definition of “Equity Conditions Failure” for capital raising restrictions
This definition ties Equity Conditions Failure to equity financing conditions.
"Equity Conditions Failure" means the inability to meet the conditions required for an issuer to raise capital through the sale of equity securities.
Definition of “Equity Conditions Failure“ for control provisions
This definition connects Equity Conditions Failure to shareholder control thresholds.
"Equity Conditions Failure" means that issuing additional shares would result in a change of control or exceed shareholder ownership limits, preventing the transaction.
Definition of “Equity Conditions Failure” for blackout periods
This definition applies Equity Conditions Failure to trading restrictions.
"Equity Conditions Failure" refers to the presence of a blackout period or other restriction that prevents equity transactions from occurring.
Definition of “Equity Conditions Failure” for insolvency events
This definition links Equity Conditions Failure to financial distress.
"Equity Conditions Failure" means that an issuer has entered insolvency proceedings, rendering it ineligible to issue or convert equity securities.
Definition of “Equity Conditions Failure” for voting rights impact
This definition ties Equity Conditions Failure to voting power dilution.
"Equity Conditions Failure" means that an equity transaction would significantly alter voting rights in a way that is prohibited under the agreement.
Definition of “Equity Conditions Failure” for dividend distributions
This definition connects Equity Conditions Failure to dividend eligibility.
"Equity Conditions Failure" means that an issuer has not met the financial or regulatory conditions necessary to distribute dividends to shareholders.
Definition of “Equity Conditions Failure” for share repurchase programs
This definition applies Equity Conditions Failure to stock buybacks.
"Equity Conditions Failure" refers to the failure to meet the conditions required for an issuer to repurchase its shares from the market.
Definition of “Equity Conditions Failure” for exchange ratio adjustments
This definition links Equity Conditions Failure to merger and acquisition terms.
"Equity Conditions Failure" means the failure to satisfy conditions necessary to adjust the exchange ratio in an M&A transaction involving equity consideration.
Definition of “Equity Conditions Failure” for leverage ratio compliance
This definition ties Equity Conditions Failure to financial leverage thresholds.
"Equity Conditions Failure" means that an issuer’s leverage ratio exceeds the agreed-upon limits, preventing additional equity issuances.
Definition of “Equity Conditions Failure” for escrow conditions
This definition connects Equity Conditions Failure to equity held in escrow.
"Equity Conditions Failure" means that an issuer has not satisfied the conditions for releasing shares held in escrow under a contractual agreement.
Definition of “Equity Conditions Failure” for restricted stock vesting
This definition applies Equity Conditions Failure to employee stock awards.
"Equity Conditions Failure" means that a company has not met the performance or time-based conditions required for restricted stock awards to vest.
Definition of “Equity Conditions Failure” for tax compliance
This definition links Equity Conditions Failure to tax obligations on equity transactions.
"Equity Conditions Failure" means that an issuer has not fulfilled tax obligations related to equity transactions, resulting in a restriction on stock issuance or conversion.
Definition of “Equity Conditions Failure” as non-compliance with issuance requirements
This definition ties Equity Conditions Failure to the failure to meet issuance prerequisites.
"Equity Conditions Failure" means the failure to satisfy the equity conditions necessary for the issuance, sale, or conversion of securities under the agreement.
Definition of “Equity Conditions Failure” as non-fulfillment of trading conditions
This definition connects Equity Conditions Failure to stock trading metrics.
"Equity Conditions Failure" refers to the failure to meet the minimum stock price, trading volume, or market capitalization requirements specified in the agreement.
Definition of “Equity Conditions Failure” as regulatory non-compliance
This definition links Equity Conditions Failure to the failure to meet regulatory approvals.
"Equity Conditions Failure" means the inability to obtain or maintain the regulatory approvals required for equity-related transactions.
Definition of “Equity Conditions Failure” as covenant breach
This definition applies Equity Conditions Failure to breaches of financial covenants.
"Equity Conditions Failure" refers to the breach of financial covenants that are prerequisites for equity-related actions.
Definition of “Equity Conditions Failure” as failure of market listing requirements
This definition ties Equity Conditions Failure to stock exchange listing conditions.
"Equity Conditions Failure" means the failure to maintain an active listing on a recognized securities exchange, as required under the agreement.
Definition of “Equity Conditions Failure” as failure to meet investor requirements
This definition connects Equity Conditions Failure to shareholder-related conditions.
"Equity Conditions Failure" refers to the failure to meet investor-related conditions such as approval thresholds or ownership limitations.
Definition of “Equity Conditions Failure” as restrictions on securities transactions
This definition links Equity Conditions Failure to legal or contractual restrictions on transactions.
"Equity Conditions Failure" means any event that results in restrictions on the issuance, sale, or conversion of securities due to legal, contractual, or regulatory limitations.
Definition of “Equity Conditions Failure” as failure of liquidity conditions
This definition applies Equity Conditions Failure to the inability to maintain sufficient market liquidity.
"Equity Conditions Failure" refers to the inability to sustain adequate liquidity conditions, including daily trading volume and market depth, as defined in the agreement.
Definition of “Equity Conditions Failure” as non-compliance with conversion terms
This definition ties Equity Conditions Failure to the failure to meet terms for security conversion.
"Equity Conditions Failure" means the failure to meet all conditions required for the conversion of debt or warrants into equity securities.
Definition of “Equity Conditions Failure” as dilution protection breach
This definition connects Equity Conditions Failure to breaches of anti-dilution protections.
"Equity Conditions Failure" refers to the failure to adhere to anti-dilution protections, resulting in an inability to issue equity without affecting existing shareholders' rights.
Definition of “Equity Conditions Failure” as failure to satisfy financing conditions
This definition links Equity Conditions Failure to financing and capital-raising requirements.
"Equity Conditions Failure" means the failure to satisfy conditions necessary for equity-based financing or capital-raising activities as outlined in the agreement.
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