Setting up anti-dilution provisions

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

To set up the anti dilution for issuances under the Shares link in the left navigation bar, complete the steps listed below.

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 Preferred 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.

5. Select one of the 3 calculation methods.

   1. 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.

   2. Full ratchet

   3. Custom: You must enter the conversion ratio in the Summary fields.

6. In the Summary section you can 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.