If you are a private investor in a business, you are known as a subscriber. A subscription contract is a promise of the company to sell a number of shares to an investor at a specified price and an agreement from the investor to pay that price. If you own a company and have promised to sell a certain amount of shares to an investor at a certain price, you should nail the details with a subscription contract. What is a subscription contract? A subscription contract is a contract between a service provider and a subscriber that defines the exact details of the subscription, for example. B the duration of the subscription, the associated fees and the termination procedure. The assurances and guarantees provided are true and correct at the time of this period and must be true and correct from the date of payment of the Subscriber to the Company until the acceptance of the subscription of the Subscriber. If the insurance and guarantees provided by the subscriber are not true or correct before the Company accepts this subscription contract, the Subscriber will immediately notify the Company in writing. A subscription contract contains the details of the purchase price for the sale of your company`s shares. It also includes the representation and guarantees that each party will make between them as part of the agreement. (Learn more about subscription agreements.) A share purchase agreement is an agreement between a company and investors to sell shares at a fixed price to investors.
This is done simply by offering new shares to investors who will become shareholders of the company at the close of the transaction. If a company wants to raise capital, it can do so by issuing shares that can be acquired through private placement or public offering. Download the PandaTip subscription contract model: This is a subscription contract for a limited liability company or “LLC” in the United States. It contains provisions similar to those you can find in a subscription contract for a company`s shareholders, but there are some important differences. PandaTip: A subscription contract is what you use to get investor payments in exchange for your company`s equity. It was preceded by a private offer memorandum containing the document containing specific details on the amount of equity you offer and the price tag of that equity, in addition to business information, a list of risks and a series of liability exclusions.
