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Subscription Agreement - 6% Series G Convertible Preferred Stock - between ObjectSoft Corp. and Investors regarding issuance and sale of preferred stock

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Multi-State
Control #:
US-EG-9225
Format:
Word; 
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Description

6% Series G Convertible Preferred Stock Subscription Agreement between ObjectSoft Corporation and Investors wherein the company shall issue and sell to the Investors preferred stock and company agrees to purchase warrant shares dated December 30, 1999.
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How to fill out Subscription Agreement - 6% Series G Convertible Preferred Stock - Between ObjectSoft Corp. And Investors Regarding Issuance And Sale Of Preferred Stock?

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FAQ

Because convertible bonds have a maturity of greater than one year, they appear under the long-term liabilities section of the balance sheet.

A convertible security is an investment that can be changed into another form. The most common convertible securities are convertible bonds and convertible preferred stock, which can be converted into common stock.

Convertible bondholders are creditors of the corporation.advantage to convert the bonds into common stock, the bonds will sell at a price based on their inherent value as bonds, regardless of the convertible feature.

By this logic, the convertible bond allows the issuer to sell common stock indirectly at a price higher than the current price. From the buyer's perspective, the convertible bond is attractive because it offers the opportunity to obtain the potentially large return associated with stocks, but with the safety of a bond.

A convertible bond is a fixed-income corporate debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.

Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it. Companies can force conversion of the bonds if the stock price is higher than if the bond were to be redeemed.

What is the accounting for issued convertible bond? Bondholders exchange their convertible bonds for ordinary shares. The carrying amount of these bonds was lower than market value but greater than the par value of the ordinary shares issued.

The equity & liability portion for the convertible bonds can be calculated using the Residual Approach. This approach assumes that the value of the equity portion is equal to the difference between the total amount received from the proceeds of the bonds and the present value of future cash flows from the bonds.

A "convertible security" is a securityusually a bond or a preferred stockthat can be converted into a different securitytypically shares of the company's common stock. In most cases, the holder of the convertible determines whether and when to convert.

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Subscription Agreement - 6% Series G Convertible Preferred Stock - between ObjectSoft Corp. and Investors regarding issuance and sale of preferred stock