Document background
The Standby Equity Purchase Agreement is a strategic financing instrument commonly used in the German market when companies require flexible access to equity capital without immediate dilution. This document is particularly relevant for public companies seeking to establish a reliable source of future funding while maintaining control over the timing and size of capital raises. The agreement, governed by German law, typically includes comprehensive terms covering share issuance mechanics, pricing formulas, regulatory compliance requirements, and investor rights. It's especially valuable during periods of market volatility or when companies anticipate future capital needs for growth, acquisitions, or working capital. The document must comply with German corporate law requirements, particularly the Aktiengesetz, while incorporating international market standards for equity commitment facilities.
