Can a convertible security be issued prior to a shareholder vote, if the transaction involves an alternative outcome?
A convertible security can be issued prior to the vote even if the transaction contains an alternative outcome, provided that no common shares are issued prior to the vote. After the vote, the securities can fully convert if approved by the shareholders, or if shareholders disapprove the proposal, conversions can take place up to but not reaching an amount that would require shareholder approval.
