Senti:
That may well be. However, the subscription agreement, which defines the t&c of the purchase of the securities, does not address this issue and much more guarantee that authorized shares will be available at the time of conversion, or ever.
Now to be precise, the subscription agreement I received is between me and NWBO. Other investors may have a different agreement where this issue is addressed and commitments may be negotiated such that in the event the covering authorized shares are not approved, options/shares held by management will cover the conversions and are pledged to do so in such an event.
Leverage in negotiations also depends upon who you are, how much you are investing, etc, etc…..
This raise was an initial tranche to fund the company which previously was partly funded by warrant conversions. It seems apparent that this source of funding has dried up.
FWIW.