ADVOKS GLOBAL · KENYA
The Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023
42. Issuer of convertible securities
Edition: 2023-12-15 · In force
42. Issuer of convertible securities
Where any convertible securities are issued in connection with the special purpose acquisition company initial public offering, the securities shall comply with the following requirements—(a)only one class of convertible securities shall be permitted at a time;(b)the conversion price of the convertible securities shall not be lower than the price of the ordinary shares offered for the special purpose acquisition company initial public offering;(c)the convertible securities are non-detachable from the ordinary shares and shall not be exercisable before the completion of the business combination;(d)the convertible securities shall not have an entitlement to the funds held in the escrow account upon liquidation of the issuer or redemption of the ordinary shares by shareholders who have voted against the business combination; and(e)the tenure of the convertible securities shall expire on the earlier of the maximum tenure under the issuance terms as stated in the prospectus issued in connection with the issuer’s special purpose acquisition company initial public offering or permitted time frame for completion of a business combination where no business combination is completed within such time period.