Document background
The Subscription Agreement Private Placement is a fundamental document in Canadian private capital markets, used when companies seek to raise capital through exempt market distributions. This document is essential when issuing securities without a prospectus under various exemptions provided in National Instrument 45-106, such as the accredited investor or minimum amount investment exemptions. It contains critical information about the investment terms, subscriber qualifications, and securities law compliance requirements. The agreement includes comprehensive representations and warranties, investment mechanics, and various certificates and schedules required by Canadian securities regulators. It's particularly important for private companies, early-stage businesses, and public companies conducting private placements, serving as both a subscription mechanism and a compliance tool to ensure adherence to securities regulations.
