The Dip Society
Learn more about convertible campaigns.
This investment round is being raised by way of a convertible instrument.
The key terms that apply to the The Dip Society convertible are as follows:
► Discount – conversion at a 20% discount to the valuation set by a Trigger Event.
► Valuation cap of £6,000,000
► Conversion is triggered by ("Trigger Events"):
◆ An Equity Fundraise – defined as the Company raising investment capital of at least £150,000 from one transaction or a series of transactions, in exchange for the company issuing of Ordinary Shares;
◆ A Change of Control of the company (transfer of more than 50% of the share capital); or
◆An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
►Longstop Date is 12 months from the date of the convertible agreement.
If conversion has not been triggered by the longstop date shares will be issued on the longstop date at a valuation based on the lower of (i) the lowest price of any Ordinary Share issued after the date of this Agreement; and (ii) a pre-money company valuation of £1,500,000 on a fully diluted basis. The convertible would also convert to equity at this price in the event of winding up or liquidation of the company.