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Private Placement Agreement

This Private Placement Agreement template outlines the terms and conditions for the private issuance and subscription of shares or other securities to a limited number of investors, typically institutional or accredited investors. It is used when a company seeks to raise capital without a public offering.

Updated 16d ago
Private PlacementInvestment AgreementEquity FinancingCapital RaiseSecuritiesSharesSubscription AgreementSouthern Africa

Company Letterhead

{{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 and existing under the laws of {{jurisdiction}}, with its registered office at {{issuer_address}} (hereinafter referred to as the 'Issuer').

AND

**{{investor_name}}**, residing at / with its registered office at {{investor_address}} (hereinafter referred to as the 'Investor').

The Issuer and the Investor are hereinafter collectively referred to as 'Parties' and individually as 'Party'.

RECITALS:

A. The Issuer is desirous of raising capital through a private placement of its securities.

B. The Investor is desirous of subscribing for such securities on the terms and conditions set forth in this Agreement.

C. The Parties acknowledge that this private placement is exempt from public offering requirements under applicable securities laws and regulations in {{jurisdiction}}.

1. SUBSCRIPTION FOR SECURITIES

1.1. Subject to the terms and conditions of this Agreement, the Investor hereby irrevocably offers to subscribe for, and the Issuer hereby agrees to allot and issue to the Investor, {{number_of_shares}} ({{number_of_shares_in_words}}) ordinary shares of no par value in the capital of the Issuer (the 'Shares') at a subscription price of {{price_per_share}} ({{price_per_share_in_words}}) per Share, for a total subscription amount of {{total_subscription_amount}} ({{total_subscription_amount_in_words}}) (the 'Subscription Amount').

1.2. The Shares shall rank pari passu in all respects with the existing ordinary shares of the Issuer.

2. PAYMENT OF SUBSCRIPTION AMOUNT

2.1. The Investor shall pay the Subscription Amount to the Issuer within {{number_of_days}} ({{number_of_days_in_words}}) days of the Effective Date, into the following bank account:

Bank Name: {{bank_name}}

Account Name: {{account_name}}

Account Number: {{account_number}}

Branch Code: {{branch_code}}

SWIFT Code: {{swift_code}}

2.2. Failure to pay the Subscription Amount by the due date may result in the termination of this Agreement at the sole discretion of the Issuer.

3. REPRESENTATIONS AND WARRANTIES OF THE ISSUER

3.1. The Issuer represents and warrants to the Investor that:

(a) It is duly incorporated and validly existing under the laws of {{jurisdiction}}.

(b) It has the corporate power and authority to enter into and perform its obligations under this Agreement.

(c) The execution and delivery of this Agreement and the issuance of the Shares have been duly authorized by all necessary corporate action.

(d) The Shares, upon issuance and payment of the Subscription Amount, will be validly issued, fully paid, and non-assessable.

(e) All information provided to the Investor in connection with this private placement is true, accurate, and complete in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading.

4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

4.1. The Investor represents and warrants to the Issuer that:

(a) It has the legal capacity and authority to enter into and perform its obligations under this Agreement.

(b) It is an 'accredited investor' or 'qualified investor' (or equivalent designation under applicable securities laws) and has been provided with adequate information to make an informed investment decision.

(c) It is subscribing for the Shares for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.

(d) It understands that the Shares have not been registered under any securities laws and cannot be resold unless registered or an exemption from such registration is available.

(e) It has conducted its own due diligence and made its own independent evaluation of the Issuer and the Shares.

5. GOVERNING LAW AND JURISDICTION

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

5.2. The Parties irrevocably submit to the exclusive jurisdiction of the courts of {{jurisdiction}} for the purpose of any legal action or proceedings arising out of or in connection with this Agreement.

6. CONFIDENTIALITY

6.1. Each Party undertakes to keep confidential all information (whether written or oral) concerning the business and affairs of the other Party that it may acquire during the course of this Agreement, save for information that is publicly known or required to be disclosed by law.

7. ENTIRE AGREEMENT

7.1. 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. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

**ISSUER:**

___________________________

By: {{issuer_signatory_name}}

Title: {{issuer_signatory_title}}

Date: {{issuer_signature_date}}

**INVESTOR:**

___________________________

By: {{investor_signatory_name}}

Title: {{investor_signatory_title}}

Date: {{investor_signature_date}}

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