For notes that include both discount and cap, the notes will typically specify that the conversion price will be the lower price per share, determined by the discount to the next qualified price; round price per share, OR the price per share determined by dividing the cap by the next qualified price round pre-money valuation. The lower conversion that the investor receives the better of the two possibilities (lower conversion price per share means that the note converts into more shares in the Series A).
What if the convertible note has both a discount and a cap?
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