Rights Offering

A Rights Offering is an offering in which existing shareholders receive transferable or non-transferable rights to purchase additional shares, typically pro rata to their current ownership, often at a discount to market price. In capital raising, a Rights Offering can help a company raise funds while giving current holders priority access, and Rights Offering mechanics include subscription rights, oversubscription privileges, and deadlines.

author avatar
Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.