Document background
The Private Placement Agreement is a crucial document used in New Zealand when companies seek to raise capital through private offerings of securities to a limited number of sophisticated or wholesale investors. This approach allows companies to access capital markets without the extensive disclosure requirements and regulatory burden associated with public offerings. The document must comply with New Zealand's Financial Markets Conduct Act 2013 and related regulations, particularly regarding exempt offerings and wholesale investor provisions. It typically includes comprehensive details about the securities being offered, subscription terms, investor qualifications, and various protections for both the issuer and investors. This type of agreement is particularly valuable for growth-stage companies, established private businesses seeking additional capital, or companies pursuing strategic investments while maintaining confidentiality and control over their investor base.
