Investment Letter Of Intent for New Zealand

Investment Letter Of Intent Template for New Zealand

A preliminary document governed by New Zealand law that outlines the proposed terms and conditions of a potential investment transaction. This document serves as a formal expression of interest from an investor to invest in a target company or project, setting out key terms such as investment amount, valuation, and basic structure. While generally non-binding except for specific provisions like confidentiality, it creates a framework for further negotiations and due diligence under New Zealand's legal framework, particularly considering the Financial Markets Conduct Act 2013 and Overseas Investment Act 2005.

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What is a Investment Letter Of Intent?

An Investment Letter of Intent is a crucial preliminary document used in the early stages of investment negotiations in New Zealand. It is typically employed when an investor has serious interest in making an investment but requires more information and time for due diligence before making a binding commitment. The document outlines key terms such as proposed investment amount, valuation, structure, and timeline, while maintaining flexibility for detailed negotiations. Under New Zealand law, while mostly non-binding, certain provisions like confidentiality and exclusivity can be made binding. The document must comply with New Zealand's regulatory framework, including the Financial Markets Conduct Act 2013, Overseas Investment Act 2005, and relevant securities regulations. It serves as a roadmap for the investment process and demonstrates serious intent while protecting both parties' interests during preliminary discussions.

What sections should be included in a Investment Letter Of Intent?

1. Date and Addresses: Complete letterhead with date and proper addressing of all parties

2. Introduction: Opening paragraph identifying the parties and establishing the purpose of the letter

3. Investment Overview: Brief description of the proposed investment opportunity and basic terms

4. Proposed Transaction Structure: Outline of the intended investment structure, including proposed investment amount and ownership stakes

5. Key Terms: Essential terms including valuation, investment amount, and basic conditions

6. Due Diligence: Overview of the due diligence process and requirements

7. Timeline: Proposed schedule for completion of due diligence, negotiation, and closing

8. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions

9. Confidentiality: Binding confidentiality obligations regarding the proposed transaction

10. Closing: Signature blocks and formal closing of the letter

What sections are optional to include in a Investment Letter Of Intent?

1. Exclusivity: Optional provision for exclusive negotiation period, used when parties want to ensure no parallel negotiations

2. Conditions Precedent: List of specific conditions that must be met before proceeding, used for complex investments

3. Cost Allocation: Agreement on who bears the costs of due diligence and transaction, used when significant costs are expected

4. Governing Law and Jurisdiction: Specification of applicable law and courts, used particularly for cross-border investments

5. Break Fee: Provisions for compensation if either party withdraws, used in high-value transactions

6. Management and Control: Preliminary agreement on management rights, used when investor seeks active involvement

What schedules should be included in a Investment Letter Of Intent?

1. Term Sheet: Detailed summary of key commercial and legal terms of the proposed investment

2. Timeline Schedule: Detailed timeline with specific milestones and deadlines

3. Due Diligence Requirements: List of required documents and information for due diligence

4. Corporate Information: Basic corporate information about both parties

5. Ownership Structure: Current and proposed ownership structure diagrams

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Real Estate

Manufacturing

Financial Services

Healthcare

Agriculture

Retail

Energy

Infrastructure

Mining

Education

Tourism

Biotechnology

Green Technology

Digital Media

Relevant Teams

Legal

Finance

Corporate Development

Investment

Executive Leadership

Board of Directors

Strategy

Mergers & Acquisitions

Business Development

Risk Management

Compliance

Due Diligence

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Investment Director

Corporate Development Manager

Legal Counsel

Investment Manager

Business Development Director

Managing Director

Board Member

Financial Controller

Investment Analyst

Due Diligence Manager

Strategy Director

Mergers & Acquisitions Manager

Company Secretary

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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