Anti-dilution protection, Business Economics

Suppose that EBV makes a $6m Series A investment in Newco for 1m shares at $6 per share. One year later, Newco has fallen on hard times, and receives a $6m Series B financing from Talltree for 6m shares at $1 per share. The founders and the stock pool have claims on 3m shares of common stock.

Following the Series B investment, what percentage of Newco (fully diluted) would be controlled by EBV? Consider the following cases:

a) Series A has no anti-dilution protection

b) Series A has full-rachet anti-dilution protection

c) Series A has round-based weighted-average anti-dilution protection

d) Series A has percentage based anti-dilution protection in which the faction of the firm owned by EBV remains constant.

Posted Date: 4/3/2013 1:34:32 AM | Location : United States







Related Discussions:- Anti-dilution protection, Assignment Help, Ask Question on Anti-dilution protection, Get Answer, Expert's Help, Anti-dilution protection Discussions

Write discussion on Anti-dilution protection
Your posts are moderated
Related Questions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 a) Many are concerned


Question 1: ‘The WTO was set up with the intention of regulating international trade between countries'. How successful has the WTO been in attaining its objectives? Questi

Explain the discounting principle. Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next f

What is the function of World Trade Organisation in the promotion of development? The World Trade Organization (WTO) is international association dealing along with the global


a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the comm

An agent has a utility function over goods 1 and 2 of the form U = x c 1 x d 2 where c is your 1- digit number and d is your minimum number. The agent's income is equal to you

I want a presentation on Saudi Arabia''s economic forecast for 2018 to 2020 and role and future of travel industry in it.

Financial engineering deals with the design of new assets. Draw the payoff (at t=1) of the following bull butterfly spread: Purchase 1 call with exercise price a Sell 2 calls