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Equity Commitment Note - an equity commitment note is a type of mandatory convertible, which can be exchanged for stock once the security reaches maturity, but not before. The holders of the note are not required to purchase the equity and can opt not too. They can require the issuer to exchange the note for a future equity issue. An equity commitment note is similar to an equity contract note, but has one significant difference. Equity contract notes you are required to purchase the equity, where as you don't with an equity commitment note. Other then that difference, the notes is fundamentally the same. and are both legal documents.
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