hard · Private Equity & LBOs
A growth equity investor holds Series A convertible preferred shares with a conversion price of $9.00. A subsequent Series B 'down round' raises $3M at a share price of $6.00. There were 2,666,667 shares outstanding before the round (broad-based).
If the Series A has broad-based weighted-average anti-dilution protection, what is the new conversion price?
- $8.53
- $7.50
- $6.00
- $8.78
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