Anti-dilution

Anti-dilution (Equity) – An issuance term designed to protect the percentage of Company ownership an equity Investor retains when there is a future issuance of equity at a lower price than the previous equity sales.  For example, if the subsequent Investors will receive a 20% ownership in the business for a lower share price, anti-dilution protection might result in less than a 20% reduction in the earlier investors’ subsequent ownership.