Venture Deals · glossary
The price at which a preference share converts into ordinary shares. Dividing the Original Issue Price by it gives the number of ordinary shares. Anti-dilution can lower it. Article 6.2 · Chapter 9
Explained in Chapter 9, Preference Shares and the Stack, of Venture Deals.
So a holder gets its money back or a share of the balance, never both. How many ordinary shares does a preference share count as? Article 6 divides its Original Issue Price by its conversion price, which starts at the issue price and can be adjusted later. At the Series A each share converted one for one, but Chapter 13 shows how that changed for the Series A class.Read Chapter 9, Preference Shares and the Stack →
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