Anti-dilution (full ratchet)

Anti-dilution provisions in which the price at which the anti-dilution instruments are converted is the lowest price at which ordinary shares have been sold.For example: in a prior round of financing which raised capital at €2.00 per share, investors received full ratchet anti-dilution protection. A subsequent round of financing was consummated at €1.00 per share, and the early round investors therefore had the right to convert their anti-dilution instruments at the lowest (ie €1.00) price.

See anti-dilution provisions, anti-dilution (weighted average), blank cheque preferred stock, poison pill, shark repellent.