Document background
The Cornerstone Investment Agreement is a crucial document used in the Philippine capital markets when a company seeks to secure significant investment commitments prior to an IPO or major funding round. This agreement provides certainty to the issuer regarding capital raising while offering cornerstone investors privileged access to substantial equity positions. Typically executed in compliance with Philippine securities laws, particularly the Securities Regulation Code and relevant SEC regulations, it outlines detailed terms including investment amount, pricing mechanisms, lock-up periods, and investor rights. The agreement helps demonstrate confidence in the offering to other potential investors and can be instrumental in ensuring the success of the capital raising exercise. It requires careful consideration of foreign investment restrictions, corporate regulations, and stock exchange listing requirements applicable in the Philippines.
