DarioHealth Corp (DRIO)

[Taylor Orion]

If I had meant that the stock was subject to price based anti-dilution effects, then I would have stated simply as the price drops of the stock the more share entitlement the investors would be entitled to (which would make this company a definite pass for investing purposes - like you said toxic/bottomless financing). I have consistently been saying only if the company chooses to significantly dilute further the preferred Holders would be entitled to further shares, and the company would be required to maintain more shares for Preferred conversion. This, would then effect the price adjustment. As you said - retail investors should take comfort in the fact that this means the preferred holders have nothing to gain from significant drops in price without company driven dilution. This keeps both the company, and preferred shareholders from having significant reasoning in wanting to see the price drop, while placing controls on how much the company is able to dilute without increasing the A/S by public registration. If the company were to attempt significant offerings, or issuance, this would require an increased reserve of shares to maintain the preferred shareholders' interest. While it is always possible the company may just raise the A/S, it would still require a registration statement and public notification, as well. So the company still does not have full access to issuance of 45 MM shares, without at least maintaining half of it for reservation of preferred shareholders' protection of interest, considering the proportion of value to the Holders that would represent.