Investment Agreement Template for Canada

An Investment Agreement spells out the terms and conditions when someone puts money into a business or project in Canada. It details how much is being invested, what the investor gets in return (like shares or ownership rights), and when they can expect returns or dividends.

These agreements protect both sides by clearly stating key obligations, voting rights, and exit strategies. They often include special protections under Canadian securities laws, especially for private placements and venture capital deals. The agreement might also cover board representation, financial reporting requirements, and what happens if the business needs more funding later.

Use an Investment Agreement anytime you're putting money into a Canadian business venture or accepting investment from others. This includes startup funding rounds, real estate development projects, joint ventures, or when bringing on angel investors or venture capital firms.

The timing is crucial - draft and sign the agreement before any money changes hands. This protects both parties by documenting expectations upfront, especially for complex deals involving multiple funding stages, share options, or convertible notes. Many Canadian provinces require these agreements for certain private placements and securities offerings.

• Capital Investment Agreement: Used for major business funding rounds, detailing equity stakes, voting rights, and investor protections
• Agreement For Transfer Of Shares: Handles the transfer of existing shares between parties, including payment terms and warranties
• Agreement For Sale Of Shares: Focuses on new share issuance and initial sales, with subscription terms and company representations
• Bond Repurchase Agreement: Governs fixed-income investment transactions, specifying repurchase terms and interest rates
• Operating Agreement For Rental Property LLC: Structures real estate investment partnerships, including profit sharing and management duties

• Investors: Including angel investors, venture capitalists, private equity firms, and individual shareholders who provide capital in exchange for ownership or returns
• Business Owners: Entrepreneurs, company directors, and existing shareholders who seek funding while maintaining control over their operations
• Legal Counsel: Corporate lawyers who draft and review Investment Agreements to ensure compliance with Canadian securities laws and protect client interests
• Financial Advisors: Help structure deals, perform due diligence, and advise on investment terms and valuations
• Regulatory Bodies: Provincial securities commissions that oversee investment transactions and ensure compliance with Canadian regulations

• Investment Details: Gather exact investment amounts, valuation figures, and any planned funding stages or milestones
• Ownership Structure: Document current shareholdings, proposed equity splits, and any special share classes or rights
• Due Diligence: Collect financial statements, business plans, and corporate records to support investment terms
• Compliance Check: Review provincial securities regulations and investor qualification requirements
• Agreement Terms: Define voting rights, board seats, exit strategies, and future funding provisions
• Documentation: Our platform generates custom Investment Agreements that include all required elements under Canadian law

• Parties and Purpose: Full legal names, addresses, and clear description of investment objectives
• Investment Terms: Precise amount, payment schedule, and form of investment (cash, assets, or services)
• Equity Structure: Share classes, ownership percentages, and voting rights allocation
• Rights and Obligations: Management participation, information rights, and future funding commitments
• Exit Provisions: Share transfer restrictions, tag-along rights, and buyout procedures
• Regulatory Compliance: Securities law declarations and investor qualification statements
• Governing Law: Applicable provincial jurisdiction and dispute resolution procedures
• Execution Details: Signature blocks, witness requirements, and effective date

An Investment Agreement differs significantly from an Investment Agreement Term Sheet. While both documents deal with investment transactions, they serve distinct purposes in the Canadian investment landscape.

• Legal Binding: Investment Agreements are fully binding contracts that create enforceable obligations, while Term Sheets are typically non-binding preliminary documents that outline key deal points
• Detail Level: Investment Agreements contain comprehensive legal provisions, warranties, and conditions; Term Sheets offer bullet-point summaries of main terms
• Timing: Term Sheets come first as negotiation tools, followed by the formal Investment Agreement once parties agree on basic terms
• Legal Protection: Investment Agreements provide complete legal safeguards and remedies; Term Sheets usually only have confidentiality and exclusivity provisions as binding elements
• Documentation: Investment Agreements require extensive due diligence and supporting documents; Term Sheets focus on essential commercial terms