Definition for : Capital increase

From a financial point of view, a capital increase is the sale of shares. Proceeds of this sale go to the company. A capital increase will Lead to a change in different indicators: right to dividends, to profits, to Liquidation sale proceeds, to Equity, to voting rights amongst different funds providers. Capital increases can be made in cash or by Asset contribution, following the exercise of warrants or a Debt conversion, be reserved or not, and with or without preferential subscription rights.

(See Chapters Chapter 23 Options and Chapter 39 Implementing a debt policy of the Vernimmen)

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