Document background
The Cornerstone Investment Agreement is a sophisticated legal instrument used in Nigerian corporate transactions when a significant investor (cornerstone investor) commits to making a substantial investment in a company. This agreement is particularly crucial in the context of pre-IPO investments, major funding rounds, or strategic corporate restructurings. It is governed by Nigerian law and must comply with various regulations including the Investment and Securities Act 2007, Companies and Allied Matters Act 2020, and relevant Securities and Exchange Commission rules. The document typically details the investment terms, share subscription mechanics, investor protections, governance rights, and ongoing obligations of all parties. It's commonly used when companies seek to secure anchor investors who can provide both capital and strategic value, often serving as a foundation for larger fundraising efforts or corporate developments.
