Price Amendment refers to a modification in the details disclosed to potential investors regarding the price of a security available for purchase. This may involve alterations in the amount of funds being raised, the fees imposed by underwriters, or any other factors that impact the price of the security.
A price amendment is a modification to a registration statement, prospectus, or prospectus supplement that impacts the offering price of securities. This modification can involve changes to underwriting and selling discounts or commissions, proceeds amount, conversion rates, call prices, or other factors related to the offering price. For example, if a company initially plans to offer shares at $20 per share but later decides to increase the price to $25 per share, a price amendment to the prospectus would be necessary. Similarly, if a bond issuer initially sets the conversion rate for its convertible bonds at 50 shares of common stock per $1,000 bond but later decides to increase it to 60 shares per $1,000 bond, a price amendment to the bond’s prospectus would be required. These examples demonstrate how a price amendment can impact the offering price of securities and their related terms and conditions, necessitating an amendment to the prospectus or registration statement.
The Price Amendment refers to a provision in a contract or agreement that allows for the adjustment of prices under certain circumstances.
The Price Amendment can be invoked when there are significant changes in market conditions, costs of production, or other factors that affect the pricing of goods or services.
The Price Amendment typically outlines the process for determining and implementing price adjustments. It may require parties to provide evidence of the changed circumstances and may involve negotiation or arbitration to reach a fair and reasonable price.
If the Price Amendment is not explicitly stated in the contract, it may be difficult to enforce. It is always advisable to include clear and specific provisions regarding price adjustments to avoid any disputes.
The ability to invoke the Price Amendment unilaterally depends on the terms of the contract. Some contracts may allow one party to initiate price adjustments, while others may require mutual agreement or involvement of a third party.
No, the Price Amendment can be used to both increase and decrease prices. It is designed to ensure that prices remain fair and reasonable in light of changing circumstances.
The frequency of price adjustments may be specified in the contract. If not, parties may need to negotiate or follow industry standards to determine the appropriate frequency of adjustments.
The ability to invoke the Price Amendment retroactively depends on the terms of the contract. Some contracts may allow retroactive adjustments, while others may limit adjustments to future periods only.
The applicability of the Price Amendment during force majeure events depends on the language of the contract. Some contracts may explicitly include force majeure events as triggering events for price adjustments, while others may not.
If there is a dispute regarding the implementation of the Price Amendment, parties may need to resort to alternative dispute resolution methods, such as mediation or arbitration, as outlined in the contract. If no resolution is reached, parties may need to seek legal recourse through the court system.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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