Document background
The Standby Equity Distribution Agreement (SEDA) is a sophisticated financing instrument commonly used by Australian companies seeking flexible access to capital markets. This type of agreement is particularly valuable for companies that require periodic funding injections but want to maintain control over the timing and size of capital raises. It establishes a framework where companies can draw down funds by issuing shares to a committed investor, typically at a price linked to market trading prices with predetermined discounts. The document is structured to comply with Australian corporate law, ASIC regulations, and ASX listing rules (for listed entities), incorporating necessary safeguards for both the issuing company and the investor. It's commonly used in sectors with significant capital requirements or during growth phases where traditional debt financing may not be suitable.
