Document background
The Subscription Agreement Private Placement is a crucial document used in South African private capital markets for documenting the terms of investment in securities offered through private placement. It is typically used when companies seek to raise capital from a select group of investors without making a public offering. The agreement must comply with South African regulatory requirements, particularly the Companies Act 71 of 2008 and Financial Markets Act 19 of 2012. It includes essential elements such as investor qualification criteria, subscription terms, warranties, and representations, while addressing specific South African requirements like exchange control regulations and BEE considerations where applicable. This document is fundamental for private capital raising activities and provides legal protection for both the issuing company and the investor.
