DigiU Preferred Shares: Anti-Dilution Rights

We continue our series of posts about rights that may be adopted as part of the reorganization.

Anti-dilution rights are a mechanism to protect investors from a decrease in their ownership percentage when new shares are issued. These rights are available only to preferred shareholders.

In international practice, two primary methods are used:

Full ratchet

The investor’s share count is automatically recalculated as if they had initially invested at the new, lower price. This offers maximum protection but is rarely used in its pure form to avoid discouraging new investments.

Weighted average

Adjustments are made using a formula that considers both the new issue price and the volume of shares issued. This is a more balanced approach, taking into account the interests of both existing and new investors.

These rights enable early investors to participate in the company’s growth without the risk of losing influence or investment value in future funding rounds.

Reminder: only 3 days left until the first snapshot.

Make any share payment by 30.04.2025, 23:59 (UTC) to increase the number of shares in your portfolio.

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