Setting up anti-dilution provisions

Create the anti-dilution references for an investment round in Diligent Equity.

1. Go to the Securities section in the navigation sidebar and select Shares.

   You will see the details of the company's previous securities issuances.

2. Select the round you want to update and select Settings on the toolbar.

   The Settings window opens.

3. Select the Anti dilution tab.

4. Select On to enable this feature.

   Multiple additional options open.

5. Select one of the 3 calculation methods.

   • Weighted average:

     • Narrow base: Select either Common only, or Common and Preferred.
     • Broad base: Select either Outstanding only, or Outstanding and Reserved.

     • Custom base: Enter the custom base in the Base input field.

   • Full ratchet

   • Custom: Enter the conversion ratio in the Summary fields.

     Note

     The ratio displays the calculation Equity uses.

6. In the Summary section, choose Rounding accuracy as Converted price and Conversation ratio. Default is 8 digits.

   Note

   The anti-dilution settings can be updated or changed at any time by going into the Round Settings.

7. Select Close to exit the window.