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Note And Warrant Purchase Agreement for Singapore

Note And Warrant Purchase Agreement Template for Singapore

A Note and Warrant Purchase Agreement under Singapore law is a sophisticated financing instrument that combines debt and equity features. It governs the issuance of promissory notes with attached warrants, providing investors with both secured debt returns and potential equity participation. The agreement complies with Singapore's Securities and Futures Act and is commonly used in growth-stage financing rounds, particularly in the technology and innovation sectors.

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What is a Note And Warrant Purchase Agreement?

The Note And Warrant Purchase Agreement is a crucial financing document used when companies seek to raise capital through a hybrid instrument that offers both debt and equity features. It is particularly relevant in Singapore's dynamic business environment, where companies need flexible financing options. The agreement details the terms of the note purchase, warrant coverage, conversion rights, and investor protections, all while ensuring compliance with Singapore's regulatory framework. This document is commonly employed in growth-stage financing rounds where investors seek the security of debt with potential equity upside.

What sections should be included in a Note And Warrant Purchase Agreement?

1. Parties: Identification of the company issuing notes/warrants and the purchaser(s)

2. Background: Context of the transaction and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Terms of the note and warrant purchase, including price and quantity

5. Closing Conditions: Prerequisites for completing the transaction

6. Representations and Warranties: Statements of fact by both parties

7. Covenants: Ongoing obligations of the parties

8. Events of Default: Circumstances constituting default and consequences

9. Remedies: Rights and remedies available to parties in case of default or breach

10. Miscellaneous: Standard boilerplate provisions including governing law, notices, and amendments

What sections are optional to include in a Note And Warrant Purchase Agreement?

1. Registration Rights: Rights regarding registration of securities when public offering is contemplated

2. Board Observation Rights: Investor rights to observe board meetings, typically for significant investments

3. Tag-Along Rights: Co-sale rights for investors when requested by major investors

4. Information Rights: Investor rights to receive financial and other company information

5. Participation Rights: Rights to participate in future financing rounds

What schedules should be included in a Note And Warrant Purchase Agreement?

1. Form of Note: Template of the actual promissory note

2. Form of Warrant: Template of the warrant certificate

3. Capitalization Table: Current and post-investment capital structure

4. Disclosure Schedule: Exceptions to representations and warranties

5. Investment Terms: Detailed terms of the investment including pricing and exercise periods

6. Corporate Resolutions: Board and/or shareholder resolutions authorizing the transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use

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