Document background
The Equity Financing Agreement is a crucial document used when a company seeks to raise capital through the issuance of shares to investors in the Philippines. It serves as the primary transaction document that details the terms of investment, valuation, rights of investors, and corporate governance provisions. This agreement must comply with Philippine corporate laws, particularly the Revised Corporation Code and Securities Regulation Code, and may need to address foreign ownership restrictions if international investors are involved. The document is typically used during funding rounds for startups, expansion capital for established companies, or strategic investments. It includes comprehensive provisions for investor protection, share rights, transfer restrictions, and future funding considerations, while ensuring compliance with local regulatory requirements and market practices.
