Document background
The Private Placement Agreement serves as the primary legal instrument for companies raising capital through private securities offerings in Nigeria. This document is essential when a company wishes to issue shares or other securities to a select group of investors without making a public offering. It must comply with the Nigerian Investment and Securities Act 2007, SEC Rules, and Companies and Allied Matters Act 2020. The agreement typically includes detailed terms of the offering, investor qualifications, subscription procedures, regulatory compliance requirements, and investor protections. It's commonly used by both growing companies seeking expansion capital and established businesses requiring additional funding, while ensuring compliance with Nigerian securities regulations and corporate governance requirements.
