The Float Ratio, as defined in the context of the provided reference, represents the exchange rate between shares of two entities involved in an arrangement or acquisition.
Specifically, the reference states:
Floating Ratio means the Floating Rate of a Purchaser Share to be issued by the Purchaser for each one Floating Share exchanged pursuant to the Amended Arrangement...
In simpler terms, this ratio determines how many shares of the acquiring entity (the "Purchaser Share") a holder of a target entity's share (a "Floating Share") will receive when their share is exchanged as part of the arrangement.
This ratio is a critical component in structuring share-for-share exchanges in mergers, acquisitions, or similar corporate arrangements. It establishes the value equivalence between the shares being exchanged.
The reference also includes a condition related to the aggregate number of Floating Shares on a Fully-Diluted Floating Basis, which could potentially affect the specific ratio under certain circumstances (e.g., "if the aggregate number of Floating Shares on a Fully-Diluted Floating Basis at the Acquisition Effective Time is greater than 58,257,533, ..."). This indicates that the ratio might be subject to adjustments based on pre-defined conditions related to share counts.
In essence, the Float Ratio is a direct measure of the share exchange rate in a corporate arrangement.
