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A Preferred Stock Purchase Agreement is commonly used in Singapore when companies seek to raise capital through the issuance of preferred shares, typically during Series A or later funding rounds. The agreement balances the interests of both the company and investors, providing detailed terms for the investment while ensuring compliance with Singapore's corporate and securities laws. The document includes crucial elements such as anti-dilution provisions, board representation rights, and conversion features, making it essential for growth-stage companies and their investors. This agreement type is particularly relevant in Singapore's vibrant startup ecosystem and must align with local regulatory requirements while providing adequate protection for foreign investors.
