Document background
The Convertible Note Purchase Agreement is a crucial financing instrument commonly used by Philippine companies, particularly startups and growth-stage businesses, to secure early-stage funding. This document is employed when a company seeks to raise capital without immediately setting a valuation, offering investors the opportunity to convert their loan into equity at a later date, typically during a qualified financing round. The agreement must comply with Philippine securities laws, including the Securities Regulation Code (RA 8799) and relevant SEC regulations. It's particularly useful during bridge financing rounds or when companies and investors prefer to defer valuation discussions. The document includes comprehensive details about the investment terms, conversion mechanisms, investor rights, and compliance requirements specific to the Philippine jurisdiction.
