medium · Private Equity pe-core
A company has 9M shares outstanding. It issues 10M new shares in a down round.
If an earlier investor had an 'old' conversion price of $0.50 and their anti-dilution uses the weighted average formula where B (shares at old price) is 1.2M and C (actual new) is 10M, what is the adjustment factor (A+B)/(A+C) if A=9M?
- 0.900
- 0.100
- 0.537
- 1.000
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