abstract:A material adverse change (also called a MAC) - also formulated as an Material adverse event or Material adverse effect (either, a MAE) - contingency is a legal provision often found in mergers and acquisitions contracts and venture financing agreements that enables the acquirer (or funder) to refuse to complete the acquisition or merger or financing with the party being acquired (often termed, the "target") if the target suffers such a change.VC experts; Money Glossary
"Assuming no materialadversechange in economic conditions, we look to the future increasingly confident of our ability to deliver sustainable growth, " he added.
Other important terms to consider include whether there are liens on the IP (a negative), MaterialAdverseChange clauses, cash-collateral elements (where a bank can sweep the account), and other particular covenants.
The company said it does not currently think the lawsuits will have a "material adverse effect" on its business but said it is possible that could change in the future.