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Private Placement Agreement

This Private Placement Agreement template is for South African SMEs seeking to raise capital through the private issuance of equity or debt securities to a limited number of investors.

Updated 15d ago
equity-fundingprivate placementinvestment agreementcapital raisingsharesdebtSMESouth Africa

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Private Placement Agreement

Private Placement Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

PRIVATE PLACEMENT AGREEMENT

This Private Placement Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}} ("Effective Date"),

BETWEEN:

{{issuer_company_name}}, a company duly incorporated under the laws of {{jurisdiction}}, with its registered office at {{issuer_company_address}} (hereinafter referred to as the "Issuer"),

AND

{{investor_name}}, an individual/entity with identification number/registration number {{investor_id_or_reg_number}}, and residing/with its registered office at {{investor_address}} (hereinafter referred to as the "Investor").

(Each a "Party" and collectively the "Parties")

1. RECITALS

1.1. The Issuer desires to raise capital through the private placement of {{type_of_security}} (hereinafter referred to as the "Securities").

1.2. The Investor desires to subscribe for, and the Issuer desires to issue and sell to the Investor, {{number_of_securities}} of the Securities, subject to the terms and conditions set forth in this Agreement.

1.3. This private placement is made in reliance upon applicable exemptions from registration under relevant securities laws.

2. SUBSCRIPTION AND PURCHASE OF SECURITIES

2.1. Subject to the terms and conditions of this Agreement, the Investor hereby agrees to subscribe for {{number_of_securities}} Securities at a price of {{price_per_security}} per Security, for a total subscription amount of {{total_subscription_amount}} (the “Purchase Price”).

2.2. The Securities shall be {{description_of_security_type, e.g., ordinary shares, convertible notes, etc.}} of the Issuer.

2.3. The Purchase Price shall be paid by the Investor to the Issuer on or before {{payment_due_date}} by way of {{payment_method, e.g., electronic funds transfer to bank account: [bank_name], [account_number], [swift_code]}}.

3. REPRESENTATIONS AND WARRANTIES OF THE ISSUER

The Issuer hereby represents and warrants to the Investor that, as of the Effective Date and the Closing Date:

3.1. The Issuer is a duly incorporated and validly existing company under the laws of {{jurisdiction}}.

3.2. The Issuer has the full corporate power and authority to enter into this Agreement and to perform its obligations hereunder.

3.3. All corporate actions required to be taken by the Issuer for the authorization, issuance, and sale of the Securities have been duly taken.

3.4. The Securities, when issued, sold, and delivered in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid, and non-assessable.

3.5. There are no pending or threatened legal actions, suits, or proceedings against the Issuer which could materially adversely affect its business or financial condition.

4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

The Investor hereby represents and warrants to the Issuer that, as of the Effective Date and the Closing Date:

4.1. The Investor has the full power and authority to enter into this Agreement and to perform its obligations hereunder.

4.2. The Investor is obtaining the Securities for its own account, for investment purposes only, and not with a view to, or for resale in connection with, any distribution thereof in violation of any applicable securities laws.

4.3. The Investor is an "accredited investor" or otherwise qualifies under the applicable exemptions from prospectus requirements in {{jurisdiction}}.

4.4. The Investor has received and reviewed all information it deems necessary or appropriate concerning the Issuer and the Securities, and has had the opportunity to ask questions of and receive answers from the Issuer concerning the terms and conditions of the offering.

5. CLOSING

5.1. The closing of the subscription and sale of the Securities (the "Closing") shall take place on or before {{closing_date}} at {{closing_location}} or such other date and place as may be mutually agreed upon by the Parties.

5.2. At the Closing, the Issuer shall deliver to the Investor the duly issued Securities, and the Investor shall deliver to the Issuer the Purchase Price.

6. GOVERNING LAW AND DISPUTE RESOLUTION

6.1. This Agreement shall be governed by and construed in accordance with the laws of {{jurisdiction}}.

6.2. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the rules of the {{arbitration_institution, e.g., Arbitration Foundation of Southern Africa (AFSA)}}.

6.3. The arbitration shall take place in {{arbitration_city}}, and the language of the arbitration shall be English.

7. CONFIDENTIALITY

7.1. Each Party agrees to keep confidential all non-public information disclosed by the other Party in connection with this Agreement and the private placement, except as required by law or with the express written consent of the disclosing Party.

8. MISCELLANEOUS

8.1. Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties.

8.2. Amendments: No amendment or modification of this Agreement shall be valid unless made in writing and signed by both Parties hereto.

8.3. Notices: All notices and communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally or sent by registered mail or email to the addresses set forth in this Agreement.

8.4. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties have executed this Private Placement Agreement as of the Effective Date.

FOR THE ISSUER:

___________________________

Name: {{issuer_signatory_name}}

Title: {{issuer_signatory_title}}

FOR THE INVESTOR:

___________________________

Name: {{investor_signatory_name}}

Title: {{investor_signatory_title}}

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