Anti-dilution (weighted average)

Anti-dilution provisions in which the price at which the anti-dilution instruments are converted is calculated by a weighted average formula.For example: in a prior round of financing which raised €1 million of capital at €2.00 per share, investors received weighted average anti-dilution protection. A subsequent round of financing was consummated for another €1 million at €1.00 per share, and the early round investors therefore had the right to convert their anti-dilution instruments at a weighted average adjusted price of €1.50 per share.

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