Antidilutionäännöksiä
Antidilutionäännöksiä, commonly known as antidilution provisions, are clauses in investment agreements, typically in venture capital or preferred stock financings, designed to protect investors from dilution of their ownership percentage. Dilution occurs when a company issues new shares, which can decrease the relative ownership of existing shareholders if they do not participate in the new issuance.
These provisions adjust the conversion price of preferred stock into common stock if the company subsequently
There are generally two main types of antidilution provisions: full ratchet and weighted-average. A full ratchet
A weighted-average antidilution provision is less punitive to existing shareholders. It adjusts the conversion price based