Define: Closing Proceeds

How is 'Closing Proceeds' defined in a legal contract?

• Closing Proceeds means the part of total proceeds allocated for distribution to common stock holders at or around the conclusion of the Change of Control. Seen in 4 SEC filings.
• Closing Proceeds means the sum of the remaining funds in the Trust Account immediately before the closing, taking into account the redemptions by public shareholders but before accounting for any incurred expenses in connection with the specified agreement or repayment of any outstanding obligations. Seen in 4 SEC filings.
• Closing Proceeds means the sum of any contained funds in the Trust Account, along with the cash on the organization's balance sheet and the total gross proceeds from any future commitments in accordance with the outlined section, after accounting for any redemptions and before payment of transaction expenses. Seen in 1 SEC filing.
• Closing Proceeds means the enterprise value plus the closing cash, plus the amount (if any) by which the closing net working capital is greater than the target net working capital, plus the aggregate exercise price, minus the closing indebtedness, minus the amount (if any) by which closing net working capital is less than target net working capital, minus unpaid transaction expenses, minus the representative expense fund, minus the escrow amount. No items included in the definitions of Cash, Indebtedness, Unpaid Transaction Expenses or Net Working Capital will be double counted for purposes of calculating the closing proceeds hereunder. Seen in 1 SEC filing.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Closing Proceeds means the portion of the total proceeds allocated to common stockholders when a change of control concludes.

Relevant Contract Types

• Mergers and Acquisition Contracts
• Shareholder Agreements
• Investment Agreements

Relevant Circumstances

• During the sale of a company.
• When control of a company changes.
• When company's stocks are being bought/sold.

Relevant Sectors

• Finance and Investment
• Private Equity
• Venture Capital

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Genie Definition 2

Closing Proceeds means the sum of available funds in a Trust Account, considering public shareholder redemptions and expenses, right before the transaction concludes.

Relevant Contract Types

• Trust Agreements
• Estate Planning Contracts

Relevant Circumstances

• In the process of making a trust.
• When a trust is being executed or closed.
• During estate planning.

Relevant Sectors

• Trust and Estate Management
• Wealth Management

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Genie Definition 3

Closing Proceeds means the operational value, closing cash, difference in closing and target net working capitals and accumulated exercise price, reduced by indebtedness and transaction expenses.

Relevant Contract Types

• Mergers and Acquisition Contracts
• Licensing Agreements
• Sale of Business Contracts

Relevant Circumstances

• When acquiring or merging companies.
• When licensing intellectual property.
• During the sale of a business.

Relevant Sectors

• Manufacturing
• Tech Startups
• Retail and Sales

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