Payment of Exercise Price Clause Example from Business Contracts

Payment of Exercise Price. The Holder may pay the Exercise Price in one of the following manners: (a) Cash Exercise. The Holder may deliver immediately available funds; or (b) Cashless Exercise. If on the Date of Exercise there is no effective registration statement registering, or the prospectus contained therein is not available for, the resale of the Warrant Units, the Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which event the Company shall issue to the Holder t...he number of Warrant Units determined as follows: X = Y [(A-B)/A] where: X = the number of Warrant Units to be issued to the Holder. Y = the number of Warrant Units with respect to which this Unit Warrant is being exercised. A = the average of the daily volume weighted average price of the Units (or the sum of the average of the daily volume weighted average price of the Common Stock and Warrants underlying the Units, as applicable) for the five Trading Days immediately prior to (but not including) the Date of Exercise. B = the Exercise Price. For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Units issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Units shall be deemed to have commenced, on the date this Unit Warrant was originally issued. View More