This is a Preferred Stock Purchase Agreement. It contains the agreement to sell and purchase, the closing, delivery and payment options, representations and warranties, and the schedule of purchasers, among other things.
This is a Preferred Stock Purchase Agreement. It contains the agreement to sell and purchase, the closing, delivery and payment options, representations and warranties, and the schedule of purchasers, among other things.
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A SPA should specify the sale price for the shares, specify the currency and timescale for the sale, and list any other conditions like staged payments. Usually, payment is made in cash, although sometimes the buyer may offer the seller some of its shares, or issue loan notes to the seller.
A stock purchase agreement typically includes the following information: Your business name. The name and mailing address of the entity buying shares in your company's stocks. The par value (essentially the sale price) of the stocks being sold. The number of stocks the buyer is purchasing.
How to draft a purchase agreement Name and contact information for buyer and seller. The address of the property being sold. The price to be paid for the property. The date of transfer. Disclosures. Contingencies. Signatures.
The first round of stock offered during the seed or early stage round by a portfolio company to the venture investor or fund. This stock is convertible into common stock in certain cases such as an IPO or the sale of the company.