Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows: a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens. b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information. c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties. d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives. e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering. f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any. g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any. h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing. i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby. j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber. k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any. l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement. m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time. n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time. o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 13 contracts
Samples: Subscription Agreement, Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as followswarrants:
a. The Subscriber acknowledges and understands: (ia) that the Tokens offered pursuant to the Memorandum have not been and will not be registered Subscriber is an “accredited investor” (as defined in Regulation D promulgated under the Securities Act or any state securities laws; of 1933, as amended (iithe “Act”);
(b) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorneyrepresentative has had access to the same kind of information concerning the Company that is required by Schedule A of the Act, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed to the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes extent that the Company has a limited financial and operating history and possesses such information;
(c) that the Company’s proposed investments in Digital Asset Securities involve Subscriber has received a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any copy of the Company’s investments provided Registration Statement on Amendment No. 2 to Form S-1, dated July 28, 2020, and such other information as the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of may have requested from the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.;
e. The Subscriber acknowledges and understands (d) that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber it is capable of utilizing the information made that is available to it in connection with concerning the Offering Company to evaluate the merits and risks of investment in the Company including the risk that it could lose its entire investment in the Company;
(e) that the Subscriber understands that the Shares have not been registered under the Act, the securities laws of any state or the securities laws of any other jurisdiction, and that the Shares must be held indefinitely, are subject to restrictions on sale and Transfer (as defined below) and any sale or Transfer permitted under the terms of this Agreement must be registered under the Act and such other securities laws unless an exemption from registration under the Act and such other securities laws covering the sale or Transfer of the Shares is available;
(f) that the Shares are being purchased by the Subscriber for the Subscriber’s investment in the Tokens own sole benefit and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to to, or for resale in connection with, a public offering or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and ;
(g) that the Subscriber has no plans understands that the certificate or certificates representing the Shares (if certificated) may be impressed with a legend stating that the Shares are subject to enter into any such agreement or arrangement.
m. The Subscriber understands restrictions on sale and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may Transfer and have not be sold, hypothecated or otherwise disposed of unless subsequently been registered under the Securities Act and applicable or any state securities laws and setting out or an exemption from such registration is available. It is not anticipated that there will be any market for referring to the restrictions on the Transferability and resale of the Tokens, and such securities will not be freely transferable at any time.Shares; and
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (ih) if a natural person, represents that the Subscriber has full power and authority understands that stop Transfer instructions in respect of the Shares may be issued to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporationany Transfer agent, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization Transfer clerk or other entity, represents that such entity was not formed agent at any time acting for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 8 contracts
Samples: Class D Common Stock Subscription Agreement (Rocket Companies, Inc.), Class D Common Stock Subscription Agreement (Rocket Companies, Inc.), Class a Common Stock Subscription Agreement (Rocket Companies, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to the Issuer (which representations and warranties will survive the Closing) that:
(a) Unless the Subscriber has completed Exhibit A, the Subscriber is not a U.S. Purchaser;
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of the United States:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and agrees withsale of the Securities;
(ii) the Subscriber is purchasing the Securities pursuant to exemptions from prospectus or equivalent requirements under applicable laws of the International Jurisdiction or, if such is not applicable, the Company as followsSubscriber is permitted to purchase the Securities under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions;
(iii) the applicable laws and regulations of the International Jurisdiction do not and will not require the Issuer to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Securities;
(iv) the purchase of the Securities by the Subscriber does not trigger:
a. The A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, and
(v) the Subscriber acknowledges will, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and understands(iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Securities, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (e) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber: ;
(f) the entering into of this Agreement and the transactions contemplated hereby do not and will not result in the violation of any of the terms and provisions of any law applicable to, and, if applicable, any of the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
(h) the Subscriber has received and carefully read this Agreement;
(i) if the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including those risks disclosed in the Public Record and the possible loss of the entire Subscription Amount;
(j) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Securities and the Issuer;
(k) the Subscriber is not an underwriter of, or dealer in, any of the Securities, nor is the Subscriber participating, pursuant to a natural contractual agreement or otherwise, in the distribution of the Securities;
(l) the Subscriber is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Securities, and the Subscriber has not subdivided its interest in any of the Securities with any other person;
(m) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, represents including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(n) the Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities, provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable securities laws or under an exemption from such registration requirements; and
(o) no person has full power and authority made to execute and deliver this Subscription Agreement and all other related agreements the Subscriber any written or certificates and to carry out oral representations:
(i) that any person will resell or repurchase any of the provisions hereof and thereof; Securities,
(ii) if a corporationthat any person will refund the purchase price of any of the Securities, partnershipor
(iii) as to the future price or value of any of the Securities. In this Agreement, or limited liability company or partnershipthe term “U.S. Person” will have the meaning ascribed thereto in Regulation S, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed and for the specific purpose of acquiring this Agreement includes, but is not limited to: (a) any person in the Tokens, such entity is duly organized, validly existing and United States; (b) any natural person resident in good standing the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a U.S. Person.
(p) The Subscriber should check the Office of Foreign Assets Control (“OFAC”) website at <xxxx://xxx.xxxxx.xxx/ofac> before making the following representations.
(i) The Subscriber represents that the amounts invested by it in the Issuer in the offering were not and are not directly or indirectly derived from activities that contravene federal, state of its organizationor international laws and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other things, the consummation engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at< xxxx://xxx.xxxxx.xxx/ofac. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;
(ii) To the best of the transactions contemplated hereby Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is authorized a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. You are advised that the Issuer may not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph. The Subscriber agrees to promptly notify the Issuer should the Subscriber become aware of any change in the information set forth in these representations. The Subscriber understands and acknowledges that, by law, the Issuer may be obligated to “freeze the account” of the Subscriber, either by prohibiting additional subscriptions from the Subscriber, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations. These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;
(iii) To the best of the Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber`; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure,2 or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below; and 1 These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs. 2 A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure. 3 “Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and will not result in-laws. 4 A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure and includes a person who is in a violation of state law or its charter or other organizational documents, such entity has full power position to conduct substantial domestic and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered international financial transactions on behalf of such entity the senior foreign political figure.
(iv) If the Subscriber is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Subscriber receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants to the Issuer that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a legal, valid physical presence in any country and binding obligation of such entity; orthat is not a regulated affiliate
Appears in 7 contracts
Samples: Private Placement Subscription Agreement (Orgenesis Inc.), Private Placement Subscription Agreement (Orgenesis Inc.), Private Placement Subscription Agreement (Orgenesis Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Fund as of the date of this Agreement and as of the date of any capital contribution to the Fund (and the Subscriber agrees to notify the Fund in writing immediately if any changes in the information set forth in this Agreement occur):
(a) The Subscriber is an “Accredited Investor” within the meaning of Rule 501 under the Securities Act of 1933 (the “Securities Act”) and has completed the Onboarding Pages on the Platform indicating how the Subscriber qualifies as an Accredited Investor, which the Subscriber hereby represents and agrees withwarrants is true as of the date hereof and will remain true as of the acceptance of this Agreement by the Administrator and for so long as the Subscriber holds an Interest.
(b) If the Subscriber has indicated as such in the Onboarding Pages on the Platform, the Subscriber is a “Qualified Client” within the meaning of Rule 205-3(d)(1) promulgated under the Investment Advisers Act of 1940 (the “Advisers Act”) and has completed the Onboarding Pages on the Platform indicating how the Subscriber qualifies as a Qualified Client, which the Subscriber hereby represents and warrants is true as of the date hereof and will remain true as of the acceptance of this Agreement by the Administrator and for so long as the Subscriber holds an Interest.
(c) If the Subscriber has indicated as such in the Onboarding Pages on the Platform, the Subscriber is a “Qualified Purchaser” within the meaning of Section 2(a)(51) of the Investment Company Act of 1940 (the “Investment Company Act”) and has completed the Onboarding Pages on the Platform indicating how the Subscriber qualifies as follows:a Qualified Purchaser, which the Subscriber hereby represents and warrants is true as of the date hereof and will remain true as of the acceptance of this Agreement by the Administrator and for so long as the Subscriber holds an Interest.
a. (d) Neither the Subscriber, nor any of its shareholders, members, managers, general or limited partners, directors, affiliates or executive officers, is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
(e) The Subscriber acknowledges is purchasing the Interest solely for the Subscriber’s own account for investment purposes only and understands: (i) not with a view to the sale or distribution of any part or all of the Interest by public or private sale or other disposition. The Subscriber understands that no public market exists for the Interest and that the Tokens offered pursuant Interest may have to be held for an indefinite period of time. The Subscriber has no intention of selling, granting any participation in or otherwise dividing, distributing or disposing of any portion of the Memorandum have Interest, except that participants in and beneficiaries of any Subscriber that is a Qualified Plan Investor (as defined below) will benefit as provided in plan documents.
(f) The Subscriber understands that the Interest has not been and will not be registered under the Securities Act Act, or approved or disapproved by the U.S. Securities and Exchange Commission or by any state securities laws; (ii) that administrator, or registered or qualified under any state securities law. The Interest is being offered and sold in reliance on exemptions from the offering and sale registration requirements of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under both the Securities Act and applicable state securities laws, and the Interest may not be transferred by the Subscriber except in compliance with the LLC Agreement and applicable laws and regulations.
(g) The Subscriber (either alone or resold except as permitted under with the U.S. Securities Act Subscriber’s professional advisers who are unaffiliated with the Fund, the Administrator, or as allowed by exemptions within its affiliates) has such knowledge and experience in financial and business matters that the jurisdiction Subscriber is capable of evaluating the merits and risks of an investment in the Interest and has the capacity to protect the Subscriber’s own interest in connection with the Subscriber’s proposed investment in the Fund. The Subscriber understands that an investment in the Fund is highly speculative and the Subscriber is able to bear the economic risk of the investment for an indefinite period of time and the loss of the Subscriber’s entire investment.
(h) All questions of the Subscriber or receiver of the Tokens.
b. Prior related to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed investment in the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions Fund have been answered to the full satisfaction of the Subscriber and its Advisors, if anythe Subscriber has received all the information the Subscriber considers necessary or appropriate for deciding whether to purchase the Interest.
g. The Subscriber has not reproduced(i) This Agreement, duplicated or delivered this Subscription Agreement upon acceptance by the Offering Documents or other related documents or information to any other personAdministrator, will constitute a valid and legally binding obligation of the Subscriber, enforceable in accordance with its terms except to the Subscriber’s Advisorsextent limited by applicable bankruptcy, if anyinsolvency, reorganization or other laws affecting the enforcement of creditors’ rights generally and by principles of equity.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or writtenj) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that If the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber (i) has full power and authority legal capacity to execute and deliver this Subscription Agreement and all other related agreements or certificates to perform the Subscriber’s obligations in this Agreement and to carry out the provisions hereof and thereof; (ii) if is a corporationbona fide resident of the state of residence indicated by the Subscriber in the Onboarding Pages on the Platform and has no present intention of becoming a resident of any other state or jurisdiction.
(k) If the Subscriber is not a natural person, partnershipthe Subscriber (i) is duly organized and has all requisite power to execute and deliver this Agreement and perform its obligations this Agreement requires, or limited liability company or partnership(ii) has taken all necessary action to duly authorize the execution, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity delivery and performance of this Agreement and
(iii) was not formed organized for the specific purpose of acquiring the TokensInterest, unless otherwise disclosed on the Platform.
(l) Other than as set forth in this Agreement or in the LLC Agreement (and any separate agreement in writing with the Fund executed in conjunction with the Subscriber’s subscription for the Interest), the Subscriber is not relying upon any information, representation or warranty by the Fund, the Administrator or any of its respective agents or representatives in determining to invest in the Fund. The Subscriber has consulted, to the extent deemed appropriate by the Subscriber, with the Subscriber’s own advisers as to the financial, tax, legal and other matters concerning an investment in the Interest and on that basis and the basis of its own independent investigations, without the assistance of the Fund, the Administrator, or any of its respective agents or representatives, believes that an investment in the Fund is suitable and appropriate for the Subscriber. Subscriber hereby represents and warrants that it has had the opportunity to have its own independent legal counsel review and approve all of the legal documents executed in connection with its Subscription.
(m) The Subscriber has reviewed and understands risk factors and conflicts of interests relating to an investment in the Fund as set forth in the Platform (the “Platform Disclosure”) and understands the risks and expenses of an investment in, the Fund. The Subscriber further understands that (i) the Administrator, and its affiliates (A) may carry on investment activities for their own accounts, for family members and friends who do not invest in the Fund; (B) may give advice and recommend investments to their respective family and friends that differs from advice given to, or investments recommended or bought for, the Fund, even though their business or investment objectives may be the same or similar; and (C) will be engaged in activities, including investment activities, apart from their management of the Fund as permitted by this Agreement; (ii) certain employees of the Administrator are expected to continue to perform services for the Administrator and its affiliates, as well as for new investment funds and accounts that the Administrator may hereafter establish in such manner as the Administrator, in its sole discretion, deems appropriate (subject to the limitations on the timing of such establishment, as described below); (iii) certain other selling, general and administrative expenses will be shared by the Fund and companies affiliated with the Administrator; (iv) the Fund may co-invest with affiliates of the Administrator; and (v) the Fund may use affiliates of the Administrator to provide certain services to the Fund. The Subscriber was offered the Interest through private negotiations and not through any general solicitation or general advertising, unless the Interest is being offered pursuant to Rule 506(c) under the Securities Act.
(n) The Subscriber understands and acknowledges that (i) any description of the Fund’s business and prospects given to the Subscriber is not necessarily exhaustive, (ii) all estimates, projections and forward- looking statements were based upon the best judgment of the Fund’s management at the time the estimates or projections were made and that whether or not the estimates, projections or forward-looking statements will materialize will depend upon many factors that are out of the control of the Fund and (iii) there is no assurance that any projections, estimates or forward-looking statements will be attained.
(o) The Subscriber’s information provided in this Agreement (including the Onboarding Pages in the Platform) is complete and accurate and may be relied upon by the Fund and the Administrator. Additionally, by executing the Agreement, the Subscriber acknowledges and agrees that any identifying information or documentation regarding the Subscriber and/or its suitability to invest in the Fund that was furnished by the Subscriber to the Fund, the Administrator or their affiliates in the Platform, or via e-mail, whether in connection with this subscription or previously, may be made available to the Administrator, remains true and correct in all respects and may, at the discretion of the Administrator, be incorporated by reference herein (collectively, “Supporting Documents”).
(p) Neither this Subscription nor any of the Subscriber’s contributions of Commitments do or will directly or indirectly contravene applicable laws and regulations, including anti-money-laundering laws and regulations. The Subscriber understands and agrees that the Fund may undertake any actions that the Fund deems necessary or appropriate to ensure compliance with applicable laws, rules and regulations regarding money laundering or terrorism. In furtherance of those efforts, the Subscriber hereby represents, covenants, and agrees that, to the best of the Subscriber’s knowledge based on reasonable investigation:
(i) None of the Subscriber’s capital contributions to the Fund (whether payable in cash or otherwise) will be derived from money laundering or similar activities deemed illegal under federal laws and regulations.
(ii) To the extent within the Subscriber’s control, none of the Subscriber’s capital contributions to the Fund will cause the Fund or any of its personnel to be in violation of federal anti-money laundering laws, including without limitation the Bank Secrecy Act (31 U.S.C. 5311 et seq.), the United States Money Laundering Control Act of 1986 or the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, and any regulations promulgated thereunder.
(iii) The Subscriber acknowledges that due to anti-money laundering requirements operating in the United States, as well as the Fund’s own internal anti-money laundering policies, the Fund and the Administrator may require further identification of the Subscriber and the source of its capital contribution before these Subscription Documents can be processed, capital contributions can be accepted, or distributions made. When requested by the Administrator, the Subscriber will provide any and all additional information, and the Subscriber understands and agrees that the Administrator may release confidential information about the Subscriber (and, if applicable, any underlying beneficial owner or Related Person1 to any person) if the Administrator has determined that the release is necessary to ensure compliance with all applicable laws and regulations concerning money laundering and similar activities; provided, that prior to releasing the information, the Administrator will confirm with counsel that the release is necessary to so ensure said compliance.
(q) Except as otherwise disclosed in writing to the Administrator, the Subscriber represents and warrants that neither it, nor to the best of its knowledge and belief after due inquiry, the Beneficial Owners (as defined below), nor any person or entity controlled by, controlling or under common control with the Subscriber or the Beneficial Owners, nor any person having a beneficial or economic interest in the Subscriber or the Beneficial Owners, any person for whom the Subscriber is duly organizedacting as agent or nominee in connection with this investment, validly existing nor in the case of a Subscriber which is an entity, any Related Person is:
1 For purposes of this subparagraph (n) and subparagraph (o) below, with respect to any entity, any interest holder, director, senior officer, trustee, beneficiary or grantor of such entity; provided that in good standing the case of an entity that is a publicly traded company or a tax qualified pension or retirement plan in which at least 100 employees participate that is maintained by an employer that is organized in the U.S. or is a U.S. government entity (a “Qualified Plan”), the term “Related Person” will exclude any interest holder holding less than 5% of any class of securities of such publicly traded company and beneficiaries of such Qualified Plan.
(i) a Prohibited Investor;2
(ii) a Senior Foreign Political Figure,3 any member of a Senior Foreign Political Figure’s “immediate family,” which includes the figure’s parents, siblings, spouse, children and in-laws, or any Close Associate4 of a Senior Foreign Political Figure, or a person or entity resident in, or organized or chartered under, the laws of a Non-Cooperative Jurisdiction;5
(iii) a person or entity resident in, or organized or chartered under, the laws of a jurisdiction that has been designated by the U.S. Secretary of the Treasury under Section 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns; or
(iv) a person or entity who gives the Subscriber reason to believe that its funds originate from, or will be or have been routed through, an account maintained at a Foreign Shell Bank,6 an “offshore bank,” or a bank organized or chartered under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orNon-Cooperative Jurisdiction.
Appears in 6 contracts
Samples: Subscription Agreement, Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The sale of the Purchased Securities by the Corporation to the Subscriber is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the sale of the Purchased Securities or upon the issue of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or registration statement or delivering an offering memorandum or similar document. The Subscriber hereby acknowledgesand, represents if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, acknowledge, represent, warrant, covenant and warrants tocertify to and with the Corporation that, as at the date given above and at the Closing Date:
(a) the Corporation has advised you that the Corporation is relying on an exemption from the requirements under the Securities Laws in Canada to provide you with a prospectus or registration statement and to sell the Purchased Securities through a person registered to sell securities under the Securities Laws in Canada and no prospectus or registration statement has been filed by the Corporation with any of the Commissions in connection with the issuance of the Purchased Securities, and agrees with, the Company as followsa consequence:
a. The Subscriber acknowledges and understands: (i) you are restricted from using most of the civil remedies available under Securities Laws in Canada and certain protections, rights and remedies provided by Securities Laws in Canada, including statutory rights of rescission or damages, will not be available to you;
(ii) you may not receive information that would otherwise be required to be provided to you under the Securities Laws in Canada; and
(iii) the Corporation is relieved from certain obligations that would otherwise apply under the Securities Laws in Canada;
(b) if you are the Subscriber, you are resident in the jurisdiction set out under “Subscriber’s Residential or Head Office Address” on page i of this Agreement or if you are the Disclosed Purchaser, you are resident in the jurisdiction set out under “Disclosed Purchaser’s Residential or Head Office Address” on page ii of this Agreement, as applicable, which address is your residence or principal place of business, and such address was not obtained or used solely for the purpose of acquiring the Purchased Securities, and if you were solicited to purchase the Purchased Securities, such solicitation occurred in such jurisdiction and the purchase by and sale to you of the Purchased Securities and any act, solicitation, conduct or negotiation directly or indirectly in furtherance of such purchase and sale has occurred only in such jurisdiction;
(c) you are:
(i) purchasing the Purchased Securities as principal for your own account or, in the case of section 4(d)(i) below, are deemed under the applicable Securities Laws in Canada to be purchasing as principal, and not for the benefit of any other person; or
(ii) purchasing the Purchased Securities as agent for the Disclosed Purchaser and the Disclosed Purchaser for whom you are acting is purchasing the Purchased Securities as principal for its own account and not for the benefit of any other person; or
(d) you:
(i) are an Accredited Investor, by virtue of the fact that you fall within one or more of the sub-paragraphs of the definition of Accredited Investor set out in the Accredited Investor Certificate attached as Appendix A to Schedule A, you confirm the truth and accuracy of all statements in such schedule as of the date of this Agreement and the Closing Date, and you were not created or used solely to purchase securities as an Accredited Investor as described in paragraph (m) of the definition of Accredited Investor set out in Appendix A to Schedule A and if the Subscriber is an individual described in category (j), (k) or (l) of the Accredited Investor Certificate (and does not meet the higher financial asset threshold set out in paragraph (j.1) of the Accredited Investor Certificate), it is delivering with this Agreement a completed and signed Form 45-106F9 - Form for Individual Accredited Investors (attached as Exhibit 1 to Appendix A); or
(ii) are not an individual, are purchasing sufficient Offered Securities so that the Tokens aggregate acquisition cost of the Purchased Securities is not less than CDN$150,000 and were not created solely to purchase or hold securities in reliance on section 2.10 of National Instrument 45-106;
(e) if you are not an individual, you pre-existed the offering of the Offered Securities and you have a bona fide business purpose other than the investment in the Offered Securities and you were not created, formed or established solely or primarily to acquire Offered Securities, or permit purchases of securities without a prospectus, in reliance on an exemption from the prospectus requirements of applicable Securities Laws;
(f) unless you have completed and delivered the U.S. Accredited Investor Certificate attached as Schedule B hereto (in which case you make the representations, warranties and covenants therein):
(i) you are not a U.S. Person;
(ii) the Offered Securities were not offered pursuant to you in the Memorandum United States and at the time your buy order was made, you were outside the United States;
(iii) this Agreement was delivered to, executed and delivered by, you (or your authorized signatory) outside the United States;
(iv) you are not, and will not be purchasing the Purchased Securities for the account or benefit of, a U.S. Person or Person in the United States;
(v) you are not a distributor (as defined in Regulation S under the 1933 Act), a dealer (as defined in Section 2(a)(12) of the 1933 Act), or a person receiving a selling concession in respect of the Purchased Securities;
(vi) the current structure of this transaction and all transactions and activities contemplated hereunder is not a scheme to avoid the registration requirements of the 1933 Act;
(vii) you have no intention to distribute either directly or indirectly any of the Purchased Securities in the United States, except in compliance with the 1933 Act and applicable state securities laws;
(viii) you have not purchased the Purchased Securities as a result of any form of “directed selling efforts” (as such term is used in Regulation S) or “general solicitation or general advertising” (as such terms are used under Rule 502(c) of Regulation D), and the sale of the Purchased Securities was not accompanied by any advertisement in printed media of general and regular paid circulation including printed public media, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, television or telecommunications, including electronic display and the Internet or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(ix) you understand that the Offered Securities have not been and will not be registered under the Securities 1933 Act or the securities laws of any state of the United States, the Offered Securities may not be offered or sold, directly or indirectly, in the United States or to U.S Persons except pursuant to registration under the 1933 Act and the securities lawslaws of all applicable states or available exemptions therefrom, and the Corporation has no obligation or present intention of filing a registration statement under the 1933 Act or the securities laws of any state of the United States in respect of any of the Offered Securities;
(g) if you are resident in the United Kingdom you are:
(i) an investment professional falling within Article 19 of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 (“FPO”) namely authorised firms under FSMA; persons who are exempt in relation to promotions of shares in companies; person whose ordinary activities involve them investing in companies; governments; local authorities or international organisations; or a director, officer or employee acting for such entities in relation to investment; and/or
(ii) that an existing shareholder in the offering and sale Corporation within Article 43 of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementFPO; and and/or
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions a high value entity falling within the jurisdiction Article 49 of the Subscriber FPO, namely a body corporate with share capital or receiver net assets of not less than £5 million (except where the Tokens.
b. Prior body corporate has more than 20 members in which case the share capital or net assets should be not less than £500,000); an unincorporated association or partnership with net assets of not less than £5 million; a trustee of a high value trust; or a director, officer or employee acting for such entities in relation to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any investment; and/or
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the iv) otherwise lawfully entitled to receive documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering notwithstanding that none of the documents produced in connection with the Offering shall have been approved for the purposes of section 21 of FSMA.
(h) you have not offered or sold and will not offer or sell any Offered Securities to evaluate persons in the United Kingdom in circumstances which would result in the Offered Securities being offered to the public in the United Kingdom within the meaning of section 85(1) of FSMA.
(i) if you are resident outside of Canada and the United States, you:
(i) are knowledgeable of, or have been independently advised as to the applicable securities laws of the securities regulatory authorities (the “Authorities”) having application in the jurisdiction in which you are resident (the “International Jurisdiction”) which would apply to the acquisition of the Purchased Securities, if any;
(ii) are purchasing the Purchased Securities pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, you are permitted to purchase the Purchased Securities under the applicable securities laws of the Authorities in the International Jurisdiction without the need to rely on any exemption;
(iii) confirm that the subscription by the Subscriber complies with the securities laws requirements in the International Jurisdiction, does not contravene any applicable securities laws of the Authorities in the International Jurisdiction and does not require the Corporation to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Purchased Securities; and
(iv) confirm that the purchase of the Purchased Securities by you does not trigger:
(A) an obligation of the Corporation to prepare and file a registration statement, prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction or to register the Purchased Securities or to be registered with or to file any report or notice with or to seek any approvals of any nature whatsoever from any governmental or regulatory authority in the International Jurisdiction; or
(B) continuous disclosure reporting obligations of the Corporation in the International Jurisdiction; and you will, if requested by the Corporation, comply with such other requirements as the Corporation may reasonably require;
(j) you acknowledge that no agency, stock exchange or governmental agency, securities commission or similar regulatory authority or other entity has reviewed or passed on or made any finding or determination as to the merits and risks of or made any recommendation or endorsement with respect to the Common Shares;
(k) if you are not a resident of the Subscriber’s investment in Province of British Columbia, you certify to the Tokens Corporation that you are not a resident of British Columbia and acknowledge that:
(i) no securities commission or similar regulatory authority has obtained, in reviewed or passed on or passed on the Subscriber’s judgment, sufficient information merits of the Common Shares;
(ii) there is no government or other insurance covering the Common Shares;
(iii) there are risks associated with the purchase of the Purchased Securities and you are aware of the risks and other characteristics of the Purchased Securities;
(iv) there are restrictions on your ability to resell the Purchased Securities and it is your responsibility to find out what those restrictions are and to comply with them before selling the Purchased Securities; and
(v) the Corporation has advised you that it is relying on an exemption from the Company requirements to provide the purchaser with a prospectus and to sell securities through a person registered to sell securities under the Securities Act (British Columbia) and, as a consequence of acquiring securities pursuant to this exemption, certain protections, rights and remedies provided by the Securities Act (British Columbia), including statutory rights of rescission or Subscriber’s Advisorsdamages, will not be available to you.
(l) you acknowledge and consent to the fact that the Corporation is collecting personal information (as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws in effect from time to time) of the Subscriber and Disclosed Purchaser, if any, for the purpose of completing this Agreement; you acknowledge and consent to evaluate the merits Corporation retaining such personal information for as long as permitted or required by law or business practices; you agree and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined acknowledge that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic Corporation may use and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any disclose such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriberpersonal information: (i) if a natural person, represents that for internal use with respect to managing the relationships between and contractual obligations of the Corporation and the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofDisclosed Purchaser, if any; (ii) if a corporationfor use and disclosure for income tax-related purposes, partnershipincluding, without limitation, where required by law, disclosure to the Canada Revenue Agency; (iii) disclosure to professional advisers of the Corporation; (iv) disclosure to securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trade or similar regulatory filings, including the Form 45-106F1 – Report of Exempt Distribution (the “XXXX”) and Schedules 1 and 2 thereto, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization similar regulatory filings; (v) disclosure to a governmental or other entity, represents that authority to which the disclosure is required by court order or subpoena compelling such entity was not formed disclosure and where there is no reasonable alternative to such disclosure; (vi) disclosure to any Person where such disclosure is necessary for legitimate business reasons and is made with your prior written consent; (vii) disclosure to a court determining the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws rights of the state parties under this Agreement; and (viii) for use and disclosure as otherwise required or permitted by law; in addition, you further acknowledge and consent to the fact that the Corporation may be required to provide any one or more of its organizationthe Canadian securities regulators, stock exchanges, the consummation Investment Industry Regulatory Organization of Canada, other regulatory agencies or the Corporation’s registrar and transfer agent with any personal information provided by the Subscriber and Disclosed Purchaser, if any, in this Agreement, and may make any other filings of such personal information as the Corporation’s counsel deems appropriate, and you acknowledge receipt of notification of the transactions contemplated disclosure of Personal Information by the Corporation to the Stock Exchanges and the Subscriber and Disclosed Purchaser, if any, hereby is authorized by, consent to and will not result in a violation of state law or its charter or other organizational documents, such entity has full power authorize the foregoing use and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf disclosure of such entity Personal Information and is a legalagree to provide, valid on request, all particulars required by the Corporation in order to comply with the foregoing;
(m) you further acknowledge and binding obligation expressly consent to:
(i) the disclosure of Personal Information by the Corporation to the Stock Exchanges and other applicable regulatory authorities, as required; and
(ii) the collection, use and disclosure of Personal Information by the Stock Exchanges for such entity; orpurposes described as may be identified by the Stock Exchanges, from time to time;
Appears in 5 contracts
Samples: Subscription Agreement (Deepkloof LTD), Subscription Agreement (Deepkloof LTD), Subscription Agreement (Deepkloof LTD)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees withwarranties will survive the Closing) that:
(a) unless the Subscriber has completed Exhibit B, the Company as followsSubscriber is not a U.S. Person;
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of Canada:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Securities,
(ii) the Subscriber is intended purchasing the Securities pursuant to be exempt exemptions from registration prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Securities under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements applicable laws of the Subscriber contained in this Subscription Agreement; and International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject applicable laws of the authorities in the International Jurisdiction do not require the Issuer to restrictions on transferability and make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the offer, issue, sale or resale under of any of the Securities,
(iv) the purchase of the Securities Act by the Subscriber does not trigger:
A. any obligation to prepare and may not be transferred file a prospectus or resold except as permitted under similar document, or any other report with respect to such purchase in the U.S. Securities Act or as allowed by exemptions within the jurisdiction International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Subscriber or receiver of Issuer in the Tokens.International Jurisdiction, and
b. Prior to the execution of this Subscription Agreement, (v) the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisorwill, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and its Advisors, if any.enforceable against the Subscriber;
g. The (g) the Subscriber has not reproducedreceived and carefully read this Agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks (including those risks disclosed in the Public Record), duplicated or delivered this Subscription Agreement including the Offering Documents or other related documents or information to any other person, except to possible loss of the Subscriber’s Advisors, if any.entire investment;
h. In evaluating (i) the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Securities and the Issuer;
(j) the Subscriber has is not relied upon an underwriter of, or dealer in, any representation of the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
(k) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other information communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(oral or writtenl) other than as stated in the Offering Documents or as contained in documents so furnished no person has made to the Subscriber any written or its Advisors, if any, by the Company in writing.oral representations:
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that any person will resell or repurchase any of the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; Securities,
(ii) if a corporationthat any person will refund the purchase price of any of the Securities, partnershipor
(iii) as to the future price or value of any of the Securities.
6.2 In this Agreement, or limited liability company or partnershipthe term “U.S. Person” will have the meaning ascribed thereto in Regulation S, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed and for the specific purpose of acquiring this Agreement includes, but is not limited to: (a) any person in the Tokens, such entity is duly organized, validly existing and United States; (b) any natural person resident in good standing the United States; (c) any partnership or corporation organized or incorporated under the laws of the state United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of its organizationinvesting in securities not registered under the 1933 Act, the consummation of the transactions contemplated hereby unless it is authorized byorganized or incorporated, and will owned, by accredited investors who are not result in a violation natural persons, estates or trusts; or (e) any estate or trust of state law which any executor or its charter administrator or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 5 contracts
Samples: Private Placement Subscription Agreement, Private Placement Subscription Agreement (Icox Innovations Inc.), Private Placement Subscription Agreement (Icox Innovations Inc.)
Representations and Warranties of the Subscriber. 4.1 The Subscriber hereby acknowledges, represents represents, warrants and warrants tocovenants to and with the Issuer that, as at the date given above and agrees with, at the Company as followsClosing:
a. The Subscriber acknowledges (a) no prospectus has been filed by the Issuer with any of the Commissions in connection with the issuance of the Securities, such issuance is exempted from the prospectus requirements of the Acts and understands: that:
(i) that the Tokens offered pursuant to Subscriber is restricted from using most of the Memorandum have not been and will not be registered civil remedies available under the Securities Act or any state securities laws; Acts;
(ii) the Subscriber may not receive information that the offering and sale of the Tokens is intended would otherwise be required to be exempt from registration provided to him under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementActs; and and
(iii) the Tokens are subject to restrictions on transferability and resale Issuer is relieved from certain obligations that would otherwise apply under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of Acts;
(b) the Subscriber certifies that it is resident in British Columbia, Alberta or receiver resident outside of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber Canada and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any United States;
(collectively, “Advisors”), have received and have carefully reviewed c) the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s Purchased Securities as principal for its own assessment account and knowledge not for the benefit of any other person or is deemed under the Acts to be purchasing the Purchased Securities as principal, and in either case is not purchasing the Purchased Securities with a view to the resale or distribution of all or any of the CompanySecurities;
(d) the Subscriber, its managementif not a resident of British Columbia, crypto-currencies certifies that it is not resident in British Columbia and other digital asset securities, together with the Company’s stated objectives.acknowledges that:
e. The Subscriber acknowledges and understands that neither the SEC nor any state (i) no securities commission or similar regulatory authority has approved or disapproved of the Offering reviewed or passed upon or endorsed on the merits of the Tokens Securities;
(ii) there is no government or other insurance covering the Offering.Securities;
f. The (iii) there are risks associated with the purchase of the Securities;
(iv) there are restrictions on the Subscriber's ability to resell the Securities and it is the responsibility of the Subscriber to find out what those restrictions are and its Advisorsto comply with them before selling the Securities; and
(v) the Issuer has advised the Subscriber that the Issuer is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Securities through a person registered to sell securities under the Acts and, if anyas a consequence of acquiring the Securities pursuant to this exemption, have had certain protections, rights and remedies provided by the Act, including statutory rights of rescission or damages, will not be available to the Subscriber;
(e) the Subscriber is either:
(i) an accredited investor as defined in Multilateral Instrument 45-103 and has completed the "Accredited Investor Questionnaire" attached as Appendix II; or
(ii) a reasonable opportunity to ask questions director, senior officer or control person of and receive answers from the Issuer, or of an affiliate of the Issuer; or
(iii) a spouse, parent, grandparent, brother, sister or child of a director, senior officer or control person of the Issuer, or of an affiliate of the Issuer; or
(iv) a close personal friend of a director, senior officer or control person of the Issuer, or of an affiliate of the Issuer; or
(v) a close business associate of a director, senior officer or control person of the Issuer, or of an affiliate of the Issuer; or
(vi) a person or company that is wholly-owned by any combination of persons acting on behalf or companies described in paragraphs 4.1(e)(ii) to (v);
(f) if the Subscriber is a close personal friend of a director, senior officer or control person of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction Issuer or of an affiliate of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the CompanyIssuer, the Subscriber is a direct close personal friend and has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any known such person for brokerage commissionsa sufficient period of time to be in a position to assess the capabilities and trustworthiness of that person and is not a close personal friend solely because:
(i) the individual is a member of the same organization, finders’ fees association or religious group; or
(ii) the like relating to this Subscription Agreement individual is a client or the transactions contemplated hereby.former client;
j. The Subscriber, either alone or together with its Advisors, (g) if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable a close business associate of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks a director, senior officer or control person of the Subscriber’s investment in Issuer or of an affiliate of the Tokens Issuer, the Subscriber is a direct close business associate and has obtained, had sufficient prior business dealings with such person to be in a position to assess the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits capabilities and risks trustworthiness of such investment that person and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; ora:
Appears in 4 contracts
Samples: Subscription Agreement (Amador Gold Corp), Subscription Agreement (Amador Gold Corp), Subscription Agreement (Amador Gold Corp)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees withwarranties will survive the Closing) that:
(a) unless the Subscriber has completed Exhibit B, the Company Subscriber is not a U.S. Person (as followsdefined in Section 6.2);
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of the United States and Canada:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Shares,
(ii) the Subscriber is intended purchasing the Shares pursuant to be exempt exemptions from registration prospectus or equivalent requirements under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements applicable laws of the International Jurisdiction or, if such is not applicable, the Subscriber contained in this Subscription Agreement; and is permitted to purchase the Shares under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction applicable securities laws of the Subscriber International Jurisdiction do not require the Issuer to make any filings or receiver seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Tokens.Shares,
b. Prior to (iv) the execution purchase of this Subscription Agreement, the Shares by the Subscriber does not trigger:
A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase, in the Subscriber’s attorneyInternational Jurisdiction, accountantor
B. any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, purchaser representative and/or tax advisorand
(v) the Subscriber will, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and its Advisors, if any.enforceable against the Subscriber;
g. The (g) the Subscriber has not reproducedreceived and carefully read this Agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, duplicated or delivered this including those risks disclosed in the Public Record and the possible loss of the entire Subscription Agreement Amount;
(i) the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Shares and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Shares and the Issuer;
(j) the Subscriber has is not relied upon an underwriter of, or dealer in, any representation of the Shares, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;
(k) the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other information communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(oral or writtenl) other than as stated in the Offering Documents or as contained in documents so furnished no person has made to the Subscriber any written or its Advisors, if any, by the Company in writing.oral representations:
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that any person will resell or repurchase any of the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; Shares,
(ii) if a corporationthat any person will refund the purchase price of any of the Shares, partnershipor
(iii) as to the future price or value of any of the Shares.
6.2 In this Agreement, or limited liability company or partnershipthe term “U.S. Person” will have the meaning ascribed thereto in Regulation S, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed and for the specific purpose of acquiring this Agreement includes, but is not limited to: (a) any person in the Tokens, such entity is duly organized, validly existing and United States; (b) any natural person resident in good standing the United States; (c) any partnership or corporation organized or incorporated under the laws of the state United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of its organizationinvesting in securities not registered under the 1933 Act, the consummation of the transactions contemplated hereby unless it is authorized byorganized or incorporated, and will owned, by accredited investors who are not result in a violation natural persons, estates or trusts; or (e) any estate or trust of state law which any executor or its charter administrator or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 4 contracts
Samples: Private Placement Subscription Agreement (CurrencyWorks Inc.), Private Placement Subscription Agreement, Private Placement Subscription Agreement (CurrencyWorks Inc.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to the Issuer (which representations and warranties will survive the Closing) that:
(a) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(b) unless the Subscriber has completed Exhibit B, in which case the Subscriber makes the representations and warranties contained therein:
(i) the Subscriber is not in the United States, is not a U.S. Person, is not purchasing the Shares for the account or benefit of a U.S. Person, did not receive the offer to buy the Shares while in the United States and it (or its authorized signatory) was outside of the United States at the time its buy order was placed and this Agreement was executed,
(ii) offers and/or sales of any of the Shares prior to the expiration of the period specified in Regulation S (such period referred to herein as the “Distribution Compliance Period”) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or pursuant to an exemption therefrom, and all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the 1933 Act or an exemption therefrom, and in each case only in accordance with applicable state, provincial and foreign securities laws,
(iii) it has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of any of the Shares, which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the sale of the Shares, and
(iv) hedging transactions involving the Shares may not be conducted unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable securities laws;
(c) if the Subscriber is resident outside of Canada and the United States:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and agrees withsale of the Shares,
(ii) the Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Company as followsSubscriber is permitted to purchase the Shares under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Shares,
(iv) the purchase of the Shares by the Subscriber does not trigger:
a. The A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, and
(v) the Subscriber acknowledges will, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and understands(iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Shares, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens Shares for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (e) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber;
(f) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms;
(h) the Subscriber has received and carefully read this Agreement;
(i) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including that the Subscriber could lose its entire investment;
(j) the Subscriber has made an independent examination and investigation of an investment in the Shares and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Shares;
(k) the Subscriber is purchasing the Shares as principal for its own account for investment purposes only and not for the account of any other person, and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in the Shares, and the Subscriber has not subdivided its interest in any of the Shares with any other person;
(l) the Subscriber is not an underwriter of, or dealer in, any of the Shares, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;
(m) the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(n) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Shares,
(ii) that any person will refund the purchase price of any of the Shares, or
(iii) as to the future price or value of any of the Shares;
(o) the funds representing the Subscription Amount will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) and the Subscriber acknowledges that the Issuer may in the future be required by law to disclose the Issuer’s name and other information relating to this Agreement and the Subscription, on a confidential basis, pursuant to the PATRIOT Act;
(p) no portion of the Subscription Amount to be provided by the Subscriber: (i) if a natural person, represents has been or will be derived from or related to any activity that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing deemed criminal under the laws of the state United States of its organizationAmerica, the consummation of the transactions contemplated hereby or any other jurisdiction, or (ii) is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered being tendered on behalf of such a person or entity who has not been identified to or by the Subscriber; and
(q) the Subscriber shall promptly notify the Issuer if the Subscriber discovers that any of the foregoing representations ceases to be true and will provide the Issuer with appropriate information in connection therewith.
6.2 In this Agreement, the term “U.S. Person” has the meaning ascribed thereto in Regulation S, and, for the purpose of this Agreement, includes, but is not limited to: (a) any person in the United States; (b) any natural person resident in the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 4 contracts
Samples: Private Placement Subscription Agreement, Private Placement Subscription Agreement (Bbooth, Inc.), Private Placement Subscription Agreement (Bbooth, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company that each of the statements contained in this Section 4 is true and correct:
(a) Subscriber understands and acknowledges that the Units are being granted to Subscriber under an exemption from registration provided for in the Securities Act of 1933, as amended (the “Act”), and agrees withaccordingly, must be held indefinitely by Subscriber, unless the Units are subsequently transferred in transactions that are either registered under the Act or exempt from registration. Subscriber understands that the Company as follows:
a. The is under no obligation to register the Units under the Act or to file for or comply with an exemption from registration, and recognizes that exemptions from registration, in any case, are limited and may not be available when Subscriber may wish to sell, transfer, pledge or otherwise dispose of the Units. Subscriber acknowledges that this transaction has not been scrutinized by the United States Securities and understandsExchange Commission or by any federal or state or foreign regulatory or governmental authority charged with the administration of the securities laws;
(b) Subscriber understands and has fully considered, for purposes of owning the Units, and understands that: (i) that owning the Tokens offered pursuant Units is a speculative investment which involves a high degree of risk of loss of the entire grant to the Memorandum have not been and will not be registered under the Securities Act or any state securities lawsSubscriber; (ii) that there will be no public market for the offering Units and sale accordingly, it may not be possible for Subscriber to liquidate the Units in case of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreementan emergency; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorneyright to transfer the Units is limited as set forth in the Operating Agreement attached hereto as Exhibit A, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested as modified by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.Joinder Agreement attached hereto as Exhibit B;
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The (c) Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of owning the Subscriber’s investment in Units;
(d) Subscriber has had the Tokens and has obtainedopportunity to discuss the tax consequences of ownership of the Units with her representatives, in the Subscriber’s judgmentincluding her attorney, sufficient information from the Company or Subscriber’s Advisorsand/or accountant, if any, to evaluate ;
(e) Subscriber will own the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens Units solely for Subscriber’s own account account, for investment purposes only, and not with a view to to, or in connection with, any resale or distribution thereof. Subscriber agrees not to sell, transfer, pledge or otherwise dispose of the Units in whole or in partviolation of the provisions of the Act. The Subscriber has no contract, undertaking, understanding, agreement or arrangement, formal or informal, with any person to sell sell, transfer, pledge or otherwise transfer all to any person or otherwise dispose of the Units, or any part of thereof, any interest therein or any rights thereto; the Tokens and the undersigned Subscriber has no present plans to enter into any such contract, undertaking, agreement or arrangement.;
m. The (f) Subscriber understands that a notation restricting transfer of the Units will be made on the transfer books of the Company and consents to the placement of a legend on the Units in a form substantially as follows: The foregoing representations and warranties are made by Subscriber and Subscriber hereby agrees that it must bear such representations and warranties shall survive the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives grant of the Company, indefinitely because Units by the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any timeCompany to Subscriber.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 3 contracts
Samples: Unit Agreement (Harbor Global Co LTD), Unit Agreement (Harbor Global Co LTD), Unit Agreement (Harbor Global Co LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to the Issuer (which representations and warranties will survive the Closing) that:
(a) Unless the Subscriber has completed Exhibit A, the Subscriber is not a U.S. Purchaser;
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of the United States:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the offer and agrees withsale of the Securities;
(ii) the Subscriber is purchasing the Securities pursuant to exemptions from prospectus or equivalent requirements under applicable laws of the International Jurisdiction or, if such is not applicable, the Company as followsSubscriber is permitted to purchase the Securities under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions;
(iii) the applicable laws and regulations of the International Jurisdiction do not and will not require the Issuer to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Securities;
(iv) the purchase of the Securities by the Subscriber does not trigger:
a. The A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, and
(v) the Subscriber acknowledges will, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and understands(iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Securities, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (e) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber: ;
(f) the entering into of this Agreement and the transactions contemplated hereby do not and will not result in the violation of any of the terms and provisions of any law applicable to, and, if applicable, any of the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
(h) the Subscriber has received and carefully read this Agreement;
(i) if the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including those risks disclosed in the Public Record and the possible loss of the entire Subscription Amount;
(j) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Securities and the Issuer;
(k) the Subscriber is not an underwriter of, or dealer in, any of the Securities, nor is the Subscriber participating, pursuant to a natural contractual agreement or otherwise, in the distribution of the Securities;
(l) the Subscriber is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Securities, and the Subscriber has not subdivided its interest in any of the Securities with any other person;
(m) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, represents including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(n) the Subscriber has not acquired the Securities as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities, provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable securities laws or under an exemption from such registration requirements; and
(o) no person has full power and authority made to execute and deliver this Subscription Agreement and all other related agreements the Subscriber any written or certificates and to carry out oral representations:
(i) that any person will resell or repurchase any of the provisions hereof and thereof; Securities,
(ii) if a corporationthat any person will refund the purchase price of any of the Securities, partnershipor
(iii) as to the future price or value of any of the Securities. In this Agreement, or limited liability company or partnershipthe term "U.S. Person" will have the meaning ascribed thereto in Regulation S, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed and for the specific purpose of acquiring this Agreement includes, but is not limited to: (a) any person in the Tokens, such entity is duly organized, validly existing and United States; (b) any natural person resident in good standing the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a U.S. Person.
(p) The Subscriber should check the Office of Foreign Assets Control ("OFAC") website at <xxxx://xxx.xxxxx.xxx/ofac> before making the following representations.
(i) The Subscriber represents that the amounts invested by it in the Issuer in the offering were not and are not directly or indirectly derived from activities that contravene federal, state of its organizationor international laws and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other things, the consummation engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at< xxxx://xxx.xxxxx.xxx/ofac. In addition, the programs administered by OFAC (the "OFAC Programs") prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;
(ii) To the best of the transactions contemplated hereby Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is authorized a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. You are advised that the Issuer may not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph. The Subscriber agrees to promptly notify the Issuer should the Subscriber become aware of any change in the information set forth in these representations. The Subscriber understands and acknowledges that, by law, the Issuer may be obligated to "freeze the account" of the Subscriber, either by prohibiting additional subscriptions from the Subscriber, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations. These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;
(iii) To the best of the Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber1; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure,2 or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below; and 1 These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs. 2 A "senior foreign political figure" is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a "senior foreign political figure" includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure. 3 "Immediate family" of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and will not result in-laws. 4 A "close associate" of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure and includes a person who is in a violation of state law or its charter or other organizational documents, such entity has full power position to conduct substantial domestic and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered international financial transactions on behalf of such entity the senior foreign political figure.
(iv) If the Subscriber is affiliated with a non-U.S. banking institution (a "Foreign Bank"), or if the Subscriber receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants to the Issuer that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a legal, valid physical presence in any country and binding obligation of such entity; orthat is not a regulated affiliate.
Appears in 3 contracts
Samples: Subscription Agreement (Orgenesis Inc.), Private Placement Subscription Agreement (Convertible Note) (Orgenesis Inc.), Private Placement Subscription Agreement (Orgenesis Inc.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees with, warranties will survive the Company as followsClosing) that:
a. The (a) the Subscriber acknowledges and understands: is not a U.S. Person;
(b) the Subscriber is resident in the jurisdiction set out on page ii of this Agreement;
(c) if the Subscriber is resident outside of Canada:
(i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Common Shares,
(ii) the Subscriber is intended acquiring the Common Shares pursuant to be exempt exemptions from registration prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to acquire the Common Shares under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements applicable laws of the Subscriber contained in this Subscription Agreement; and International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction applicable laws of the Subscriber authorities in the International Jurisdiction do not require the Issuer to make any filings or receiver seek any approvals of any kind from any securities regulator in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Tokens.Common Shares,
b. Prior to (iv) the execution acquisition of this Subscription Agreement, the Common Shares by the Subscriber does not trigger:
(A) any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase, in the Subscriber’s attorneyInternational Jurisdiction, accountantor
(B) any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, purchaser representative and/or tax advisorand
(v) the Subscriber will, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv), above, to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and enforceable against the Subscriber in accordance with its Advisors, if any.terms;
g. The (g) the Subscriber has not reproducedreceived and carefully read this Agreement;
(h) the Subscriber acknowledges receipt of a copy of the unanimous shareholder agreement of the Issuer and acknowledges that it is a condition of becoming a shareholder of the Issuer that the Subscriber must become a party to such unanimous shareholder agreement;
(i) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, duplicated or delivered this Subscription Agreement including the Offering Documents or other related documents or information to any other person, except to possible loss of the Subscriber’s Advisors, if any.entire investment;
h. In evaluating (j) the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Common Shares and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber's decision to invest in the Common Shares and the Issuer;
(k) the Subscriber has is not relied upon an underwriter of, or dealer in, any representation of the Common Shares, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Common Shares;
(l) the Subscriber is not aware of any advertisement of any of the Common Shares and is not acquiring the Common Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other information communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(m) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or writtenrepurchase any of the Common Shares,
(ii) that any person will refund the purchase price of any of the Common Shares, or
(iii) as to the future price or value of any of the Common Shares; and
(n) other than as stated provided in the Offering Documents or term sheet attached as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating Exhibit “B” to this Subscription Agreement Agreement, there is no person acting or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available purporting to it act in connection with the Offering who is entitled to evaluate any brokerage or finder's fee payable by the merits Issuer. If any person establishes a claim that any fee or other compensation is payable by the Issuer in connection with this subscription for the Common Shares, the Subscriber or any beneficial purchaser for whom the undersigned is acting covenants to indemnify and risks of hold harmless the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision Issuer with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, thereto and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment all costs reasonably incurred in the Tokensdefence thereof.
6.2 In this Agreement, the term "U.S. Person" has the meaning ascribed thereto in Regulation S, and for the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part purpose of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriberthis Agreement includes: (i) if a natural person, represents that any person in the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofUnited States; (ii) if a corporation, partnership, any natural person resident in the United States; (iii) any partnership or limited liability company corporation organized or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing incorporated under the laws of the state United States; (iv) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of its organizationinvesting in securities not registered under the 1933 Act, the consummation of the transactions contemplated hereby unless it is authorized byorganized or incorporated, and will owned, by accredited investors who are not result in a violation natural persons, estates or trusts; or (v) any estate or trust of state law which any executor, administrator or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 3 contracts
Samples: Private Placement Subscription Agreement (McEwen Mining Inc.), Private Placement Subscription Agreement (McEwen Mining Inc.), Private Placement Subscription Agreement (McEwen Mining Inc.)
Representations and Warranties of the Subscriber. The Subscriber by his signature below hereby acknowledgesrepresents, represents warrants and warrants to, and agrees with, certifies to the Company as follows:
a. (a) The Subscriber acknowledges and understands: (i) is aware that the Tokens offered pursuant to the Memorandum have Offering has not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws; (iilaws or regulations in reliance upon exemptions of Section 4(2) that the offering and sale of the Tokens is intended Securities Act and Regulation S thereunder, and similar exemptions under state law. The Subscriber will not offer or sell the Units, the shares of Common Stock constituting a part of the Units or the warrants constituting a part of the Units (collectively, such Units and the underlying shares of Common Stock and warrants to be purchase Common Stock are hereinafter referred to as the "Securities") unless they are registered or are exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 4(a)(2and any applicable state securities laws or regulations.
(b) thereof, based, in part, upon The Subscriber is also aware that a legend will be placed on any certificate or certificates evidencing the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale Securities stating that they have not been registered under the Securities Act and may not be transferred setting forth or resold referring to the restrictions on transfers and sales thereof. The Company will place stop transfer instructions against the Securities and the certificates therefor to restrict the transfer thereof, except as permitted under may be prescribed by the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the TokensAct.
b. Prior to (c) The Subscriber, or his adviser, has such knowledge and experience in financial and business matters that he is capable of evaluating the execution of this Subscription Agreement, the Subscriber merits and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if anyrisks of, and understand protecting his interests in connection with, an investment in the information contained thereinUnits. The Subscriber is satisfied aware of the risks involved in his investment herein.
(d) The Subscriber has been provided with the opportunity to discuss the terms and conditions of this Offering and the business of the Company with members of management and to review all relevant financial information, books, records, and other information concerning the Company, such that it the Subscriber is familiar with the business, finances and general prospects for the future of the Company which he may consider significant for the purpose of making an investment decision. The Subscriber acknowledges that he has received adequate reviewed the reports and other information filed by the Company (or others with respect to all matters which it the Company) with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and the Securities Act.
(e) The Subscriber has the full right, power and authority to enter into this Agreement and to carry out and consummate the transactions contemplated herein. This Agreement constitutes the legal, valid and binding obligation of the Subscriber. If the Subscriber is a corporation or its Advisorstrust, if anythe officer or trustee executing this Agreement represents and warrants that he is authorized to so sign; that the corporation or trust is authorized by the Articles (or Certificate) of Incorporation and By-laws of the corporation or by the trust agreement, consider material to its decision as the case may be, to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands(f) No representations, and has assurances or warranties have been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided made to the Subscriber Subscriber, or his adviser, by the Company or by any of its respective officers, directors, employees, agents, representativesemployees or affiliates, affiliates or related parties.
d. The Subscriber is purchasing nor anyone else on their behalf, concerning, among others, the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf future profitability of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an 's investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risksit, and has determined that in entering into this transaction the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on upon any information, other than the Company results of his, or his adviser's, own independent investigation.
(g) The Subscriber will not offer or sell the Securities (which term shall include any of its directors, officers, employees, agents pre-arrangement for a purchase by a U.S. person or other representatives with respect to the legal, tax, economic and related considerations of an investment person in the Tokens, and the Subscriber has relied on the advice of, U.S.) directly or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereofindirectly, in whole the United States or in part. The Subscriber has no agreement or arrangement, formal or informal, with to any natural person to sell or transfer all or any part who is a resident of the Tokens and United States or to any other "U.S. person" (as defined below) or for the Subscriber has no plans to enter into account or benefit of any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of "U.S. person" unless subsequently registered under the Securities Act and all applicable state securities laws or an exemption from such the registration requirements of the Securities Act and similar state laws is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. (h) The Subscriber has adequate means is neither a U.S. person nor acquiring the Securities for the account or benefit of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. any U.S. person. The Subscriber: (i) , if other than a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the TokensSecurities. The Subscriber understands that a "U.S. person", such entity is duly organizedas defined by Regulation S in Rules 901 through 905 promulgated under the Securities Act ("Regulation S"), validly existing and includes any natural person resident in good standing the United States; any partnership or corporation organized or incorporated under the laws of the state United States; any estate of its organizationwhich any executor or administrator is a "U.S. person"; any trust of which any trustee is a "U.S. person"; any agency or branch of a foreign entity located in the United States; any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a "U.S. person"; any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the consummation United States; and any partnership or corporation organized or incorporated under the laws of a jurisdiction other than the United States which was formed by a "U.S. person" principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D promulgated under the Act) who are not natural persons, estates or trusts.
(i) The Subscriber is making this subscription from his residence or offices at the address set forth above. The Subscriber understands that the exemption afforded by Regulation S requires that the purchasers of the transactions contemplated hereby securities not be in the United States when the offer is authorized by, made. The purchase of the Securities hereunder by the Subscriber is in accordance with all securities and will not result other laws of the jurisdiction in a violation of state law which it is incorporated or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription legally resident. This Agreement has not been duly authorized executed or delivered by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orthe Subscriber in the United States.
Appears in 3 contracts
Samples: Regulation S Subscription Agreement (Cirmaker Technology Corp), Regulation S Subscription Agreement (Cirmaker Technology Corp), Regulation S Subscription Agreement (Cirmaker Technology Corp)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to and agrees with, covenants with the Company as follows:
a. The Subscriber acknowledges and understands: Corporation (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the which representations, warranties and agreements covenants will be true and correct as at the time of delivery of Shares with the same force and effect as if they had been made by the Subscriber at such time, and shall survive the Closing) that:
(a) the Subscriber is not a U.S. Person;
(b) the Subscriber is acquiring the Shares as a principal (and not as an agent) for investment purposes only, with no intention or view to reselling or distributing any portion or beneficial interest in the Shares, and the Subscriber will be the beneficial owner of any Shares to be issued to the Subscriber if, as and when this Subscription is accepted by the in whole or in part;
(c) the Subscriber is resident in the jurisdiction identified in the address of the Subscriber contained in this Subscription Agreement; and (iii) set forth on the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution cover page of this Subscription Agreement, which address is the residence or place of business of the Subscriber and was not created or used solely for the purpose of acquiring the Shares;
(d) if the Subscriber is resident outside of Canada:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and sale of the Shares,
(ii) the Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Corporation to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Shares,
(iv) the purchase of the Shares by the Subscriber does not trigger:
A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Corporation in the International Jurisdiction,
(v) the Subscriber will, if requested by the Corporation, deliver to the Corporation a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Corporation, acting reasonably, and
(vi) if it is a resident of the United Kingdom, it is a person of the kind described in Article 19 or 49(2)(a) to (e) of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 and is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of its business;
(e) the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber’s attorney, accountant, purchaser representative and/or tax advisoror, if any the Subscriber is a partnership, syndicate or other form of unincorporated organization, the Subscriber has all necessary approvals of relevant parties to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
(collectively, “Advisors”), have received and have carefully reviewed f) the Memorandum, entering into of this Subscription Agreement and the documents annexed hereto or referenced herein (collectivelytransactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the “Offering Documents”constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly completed, executed and any other delivered to the Corporation, as applicable, all securities forms, schedules, appendices, certificates, acknowledgements and all other documents requested by the Subscriber or its Advisors, if any, and understand Corporation in order to enable the information contained therein. The Subscriber is satisfied that it has received adequate information with respect Corporation to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that determine the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability availability of an investment in the Company, Exemption pursuant to section 3.2 hereof;
(h) the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is affairs as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s investment in the Tokens Shares and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear the economic risk of loss of such risksinvestment;
(i) the Subscriber has read the Offering Memorandum and has had the opportunity to ask questions of, and has determined that receive answers from, the Tokens are Corporation, or a suitable investment for person authorized to act on behalf of either the Subscriber.Corporation, concerning the business and affairs of the Corporation and the attributes of the Shares which the Subscriber deems necessary and appropriate;
k. The (j) in investing in the Shares, the Subscriber is not relying solely on the Company representations and warranties contained in the Offering Memorandum;
(k) the Subscriber has sought no advice in relation to the investment in the Shares from the Corporation, the Manager, or any of its directorsaffiliates, officersassociates, employeesagents, agents employees or other representatives with respect and neither the Corporation nor any of its affiliates, associates, agents, employees or representatives has provided any advice to the legal, tax, economic and related considerations of an investment Subscriber in the Tokensrelation to such purchase, and the Subscriber has relied on the advice of, or has consulted with, only been advised to consult with its own Advisors, if any.advisers with respect to an investment in the Shares;
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and (l) the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands duly executed and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
(m) none of the funds being used to purchase the Shares are, to the Subscriber’s knowledge, proceeds obtained or derived directly or indirectly as a result of illegal activities. The funds being used to purchase the Shares which will be advanced, directly or indirectly, by or on behalf of the Subscriber to the Corporation or to the account of the Corporation hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) (or any other legislation of a similar nature of an International Jurisdiction) and the Subscriber acknowledges that the Corporation may in the future be required by law to disclose the Subscriber’s (including each disclosed principal’s) name and other information relating to this Subscription Agreement and the Subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the Subscriber’s knowledge, none of the funds to be provided by the Subscriber (or, for certainty the disclosed principal, if any), are being tendered on behalf of a person or entity who has not been identified to the Subscriber, and the Subscriber shall promptly notify the Corporation if the Subscriber discovers that any of such representations cease to be true, and shall promptly provide the Corporation with all other related agreements necessary information in connection therewith;
(n) the Subscriber acknowledges that the representations and warranties contained in this Subscription Agreement, including, as applicable, any acknowledgements or certificates attached as Schedules and Appendices hereto, are made by the Subscriber with the intention that they may be relied upon by the Corporation and its legal counsel in determining the Subscriber’s eligibility to carry out acquire the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents Shares under relevant Legislation. The Subscriber further agrees that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws by accepting delivery of the state of its organizationShares, the consummation Subscriber will be representing and warranting that the foregoing representations and warranties are true and correct as at the time of delivery of such Shares with the same force and effect as if they had been made by the Subscriber at such time, and that they shall survive the completion of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver under this Subscription Agreement and all other related agreements or certificates remain in full force and to carry out effect thereafter for the provisions hereof and thereof and to purchase and hold benefit of the Tokens, the execution and delivery Corporation for a period of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orone year.
Appears in 3 contracts
Samples: Subscription Agreement, Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. 2.1 The Subscriber hereby acknowledgesrepresents, represents warrants and warrants to, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant certifies to the Memorandum have not been Co-Operative as follows and will not be registered under acknowledges the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens Co-Operative is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, relying upon the such representations, warranties and agreements of the Subscriber contained certifications in accepting this Subscription Agreement; and :
(iiia) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment Shares as principal, and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting not on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to in trust for any other person, except to the Subscriber’s Advisors, if any.party;
h. In evaluating the suitability of (b) If an investment in the Companyindividual, the Subscriber has not relied upon any representation or other information resided at the address indicated on the cover page hereof for no less than two (oral or written2) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information consecutive years from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks date of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and Subscriber will notify the Co-Operative as soon as they cease to carry out reside at the provisions hereof and thereof; address indicated on the cover page hereof;
(iic) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this This Subscription Agreement has been duly authorized authorized, executed and delivered by all necessary actionthe Subscriber and constitutes a legal, valid, binding and enforceable obligation of the Subscriber;
(d) If an individual, the Subscriber has attained the age of majority and is legally competent to execute this Subscription Agreement and to complete the subscription for Shares hereunder; and
(e) The Subscriber has been duly executed advised there can be no assurance the Subscriber will receive any dividends on the Shares or be able to redeem these Shares upon request.
2.2 By accepting the Shares, the Subscriber shall be representing and delivered warranting that the foregoing representations and warranties are true and correct as at the time of completion of the Subscription Agreement for the Shares on behalf the Closing Date, with the same force and effect as if they had been made by the Subscriber at such time. The Subscriber agrees to indemnify the Co-Operative against all losses, costs, expenses and damages or liabilities which the Co-Operative may suffer or incur as a result of any such entity representations and is a legal, valid and binding obligation of such entity; orwarranties being incorrect.
Appears in 3 contracts
Samples: Subscription Agreement, Share Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to the Issuer (which representations and warranties will survive the Closing) that:
(a) unless the Subscriber has completed Exhibit B, the Subscriber is not a U.S. Person;
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of Canada:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and agrees withsale of the Units and the Subscriber will comply with all laws of the International Jurisdiction,
(ii) the Subscriber is purchasing the Units pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Company as followsSubscriber is permitted to purchase the Securities under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Securities,
(iv) the purchase of the Units by the Subscriber does not trigger:
a. The A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, and
(v) the Subscriber acknowledges will, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and understands(iv) above to the satisfaction of the Issuer, acting reasonably;
(d) if the Subscriber is: (i) that a corporation, the Tokens offered pursuant to the Memorandum have not been Subscriber is duly incorporated and will not be registered is validly subsisting under the Securities Act or any state securities lawslaws of its jurisdiction of incorporation and has all requisite legal and corporate power and authority to sign and deliver this Subscription Agreement, to subscribe for the Units and to carry out and perform its obligations under its terms and has obtained all necessary approvals in this respect; (ii) that the offering and sale a partnership, syndicate or other form of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreementunincorporated organization, the Subscriber has the necessary legal capacity and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received authority to sign and have carefully reviewed the Memorandum, deliver this Subscription Agreement and the documents annexed hereto to observe and perform its covenants and obligations and has obtained all necessary approvals in this respect; or referenced herein (collectivelyiii) an individual, the “Offering Documents”Subscriber is of the full age of majority and is legally competent to sign this Subscription Agreement and to observe and perform his or her obligations under it, and in the cases of (i) and (ii) is not a person created or used solely to purchase or hold the Securities in reliance on an exemption from the prospectus requirements under applicable securities laws;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any other of the terms and all other provisions of any law applicable to, or, if applicable, the constating documents requested of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber in accordance with its terms;
(g) in the case of a subscription for the Units by the Subscriber acting as trustee, agent or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has attorney for a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the CompanyDisclosed Beneficial Purchaser, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished is duly authorized to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute sign and deliver this Subscription Agreement and all other related agreements or certificates and to carry out necessary documentation in connection with the provisions hereof and thereof; (ii) if a corporationsubscription on behalf of each Disclosed Beneficial Purchaser, partnershipeach of whom is subscribing as principal for its own account, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose benefit of acquiring any other person and for investment only and not with a view to the Tokens, such entity is duly organized, validly existing and in good standing under the laws resale or distribution of all or any of the state of its organization, the consummation of the transactions contemplated hereby is authorized bySecurities, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary actionauthorized, this Subscription Agreement has been duly executed signed and delivered by or on behalf of such entity of, and is constitutes a legal, valid and binding obligation agreement of, such Disclosed Beneficial Purchaser, and is enforceable against such Disclosed Beneficial Purchaser in accordance with its terms;
(h) the Subscriber has received and carefully read this Agreement;
(i) the Subscriber is purchasing the Units as principal;
(j) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including those risks disclosed in the Public Record and the possible loss of such entitythe entire Subscription Amount;
(k) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Securities and the Issuer;
(l) the Subscriber is not an underwriter of, or dealer in, any of the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
(m) the Subscriber is not aware of any advertisement of any of the Units and is not acquiring the Units as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(n) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Securities,
(ii) that any person will refund the purchase price of any of the Securities, or
(iii) as to the future price or value of any of the Securities.
6.2 In this Agreement, the term “U.S. Person” will have the meaning ascribed thereto in Regulation S, and for the purpose of this Agreement includes, but is not limited to: (a) any person in the United States; (b) any natural person resident in the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a U.S. Person.
Appears in 3 contracts
Samples: Private Placement Subscription Agreement (CurrencyWorks Inc.), Private Placement Subscription Agreement (CurrencyWorks Inc.), Private Placement Subscription Agreement (CurrencyWorks Inc.)
Representations and Warranties of the Subscriber. The Subscriber To induce the REIT to accept this subscription, the Subscriber, on its own behalf, and if applicable, on behalf of others for whom it is hereby acknowledgesacting, represents and warrants as follows (which representations and warranties shall be true as of the Closing Time) and acknowledges that the REIT is relying on such representations and warranties in connection with the transactions contemplated herein:
(a) The Subscriber:
(i) is subscribing for the Units as principal for its own account or is deemed to be subscribing as principal; and
(ii) is a resident of one of the Designated Jurisdictions; and
(a) is an “accredited investor” as that term is defined in NI 45-106; and
(b) makes the representations and warranties set forth in the duly completed Schedule A - Accredited Investor Status Certificate (and, if applicable, Schedule A-1 – Form for Individual Accredited Investors) attached hereto and which forms an integral part hereof;
(b) The Subscriber is not a trust company or trust corporation registered under the laws of Xxxxxx Xxxxxx Island that is not registered under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada and where the Subscriber is not an individual, the Subscriber is not a person created or used solely to purchase or hold securities without a prospectus in reliance on a prospectus exemption.
(c) Save and except for the Offering Memorandum, the Subscriber has not received or been provided with a prospectus or other offering memorandum, within the meaning of the Securities Laws, or any sales or advertising literature in connection with the Offering, and the Subscriber’s decision to subscribe for the Units was not based upon, and the Subscriber has not received or relied upon, any verbal or written representations as to fact made by or on behalf of the REIT. The Subscriber’s decision to subscribe for the Units was based solely upon the terms of the Offering described herein, in the Offering Memorandum and information about the REIT which is publicly available (any such information having been obtained by the Subscriber without independent investigation or verification by the REIT).
(d) The Subscriber acknowledges that the REIT may complete additional financings in the future in order to fund the ongoing development of the REIT; that there is no assurance that such financings will be available and, if available, on terms acceptable to the REIT and that any such future financings may have a dilutive effect on current securityholders of the REIT, including the Subscriber.
(e) The Subscriber understands that the Units have not been qualified by prospectus under the Securities Laws, or the applicable securities laws of any other jurisdiction, nor is such qualification contemplated, and that the Units are being issued pursuant to exemptions from the prospectus requirements of the Securities Laws. The Subscriber understands that there will be restrictions on the transferability and resale of the Units and that a legend setting out the restrictions on the transferability and resale of the Units will be placed on all certificates evidencing the Units, subject to the requirements of the Securities Laws, any other applicable securities laws.
(f) The Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Units (including the possible loss of the Subscriber’s entire investment in the Units), is able to bear the risks of an investment in the Units and understands the risks of, and other considerations relating to, the subscription for Units.
(g) The Subscriber acknowledges and agrees that it has read and fully understands the Offering Memorandum. The Subscriber has consulted to the extent deemed appropriate by the Subscriber with the Subscriber's own advisers as to the financial, tax, legal and related matters concerning an investment in Units and on that basis believes that an investment in the Units is suitable and appropriate for the Subscriber. The Subscriber acknowledges and understands that the REIT’s counsel is acting as counsel to the REIT and not as counsel to the Subscriber.
(h) If the Subscriber is not a natural person, (i) the Subscriber has the legal capacity and authority to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units, and to perform its obligations thereunder and consummate the transactions contemplated thereby and when so executed and delivered will constitute valid and legally binding agreements of the Subscriber; (ii) in the case of a Subscriber that is a corporation, it is duly incorporated and validly subsisting under the laws of the jurisdiction of its incorporation; and (iii) any person signing this Subscription Agreement on behalf of the Subscriber has been duly authorized to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units. If the Subscriber is an individual, the Subscriber has all requisite legal capacity to acquire and hold the Units and to execute, deliver and comply with the terms of each of the documents required to be executed and delivered by the Subscriber in connection with this subscription for Units. The execution and delivery by the Subscriber, and compliance by the Subscriber with, this Subscription Agreement and each other document required to be executed and delivered by the Company Subscriber in connection with this subscription for Units does not conflict with, or constitute a default under, any instruments governing the Subscriber, any law, regulation or order, or any agreement to which the Subscriber is a party or by which the Subscriber is bound. This Subscription Agreement has been duly executed by the Subscriber and, when accepted by the REIT, will constitute a valid and legally binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.
(i) The Subscriber was offered the Units in the jurisdiction listed in and is resident at the Subscriber's permanent address set forth on page 1 of this Subscription Agreement and intends that the Securities Laws of that jurisdiction shall govern the Subscriber's subscription. Such address is a true and correct address of business or residence of the Subscriber.
(j) The subscription for the Units has not been made through or as a result of, and the distribution of the Units is not being accompanied by any advertisement, including without limitation in printed public media, radio, television or telecommunications, including electronic display, or as part of a general solicitation.
(k) None of the funds that the Subscriber is using to subscribe for Units are, to the knowledge of the Subscriber, proceeds obtained or derived, directly or indirectly, as a result of illegal activities. The funds which will be advanced by the Subscriber hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) and the Subscriber acknowledges that the REIT may in the future be required by law to disclose the Subscriber’s name and other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the knowledge of the Subscriber none of the funds to be provided by the Subscriber: (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States or any other jurisdiction; or (ii) are being tendered on behalf of a person or entity who has not been identified to the Subscriber. The Subscriber agrees that it shall promptly notify the REIT if the Subscriber discovers that any of such representations ceases to be true, and to provide the REIT with appropriate information in connection therewith.
(l) The representations, warranties and covenants contained in the applicable schedules will be true and correct both as of the date of execution of this Subscription Agreement and as of the Closing Time.
(m) No person has made any written or oral representations:
(i) that any person will resell or repurchase any of the Units, other than pursuant to the redemption right of the Units as described in the Offering Memorandum;
(ii) that any person will refund the Subscription Price or any portion of the Subscription Price; or
(iii) as to the future price or value of the Units.
(n) No securities commission, agency, governmental authority, regulatory body, stock exchange or other regulatory body has reviewed or passed on the investment merits of the Units nor have any such agencies or authorities made any recommendations or endorsement with respect to the Units.
(o) The REIT is relying on an exemption from the requirement to provide the Subscriber with a prospectus under Securities Laws and, as a consequence of acquiring the Units pursuant to such exemption:
(i) certain protections, rights and remedies provided by the Securities Laws, including statutory rights of rescission and certain statutory remedies against an issuer, underwriters, auditors, trustees and officers that are available to investors who acquire securities offered by a prospectus, will not be available to the Subscriber;
(ii) the common law may not provide investors with an adequate remedy in the event that they suffer investment losses in connection with securities acquired in a private placement;
(iii) the Subscriber may not receive information that would otherwise be required to be given under Securities Laws, and
(iv) the REIT is relieved from certain obligations that would otherwise apply under Securities Laws.
(p) If required by applicable Securities Laws or the REIT, the Subscriber shall execute, deliver and file or assist the REIT in filing such reports, undertakings and other documents with respect to the issue and/or sale of the Units as may be required by any securities commission, stock exchange or other regulatory authority.
(q) The Subscriber fully understands that: (i) the REIT is not, and currently has no intention of becoming, a reporting issuer under Securities Laws and as a result, the Units have an indefinite statutory hold period; and (ii) the Subscriber will be a minority holder of Units in a private entity.
(r) The Subscriber is arm’s length (within the meaning of Securities Laws) with the REIT and has not received, and does not expect to receive, any financial assistance from the REIT, directly or indirectly, in respect of the Subscriber’s purchase of Units.
(s) In connection with this Subscription Agreement the Manager and the REIT are collecting certain “personal information” as that term is defined in applicable privacy legislation. The Subscriber acknowledges and agrees that the Manager and the shall only use and disclose such personal information for purposes consistent with the purposes for which it was initially collected without first obtaining consent from the Subscriber, such consent not to be unreasonably withheld. In addition to the foregoing, the Subscriber agrees and acknowledges that the REIT may use and disclose the Subscriber’s personal information as follows:
a. The Subscriber acknowledges and understands: (i) for internal use with respect to managing the contractual relationships and obligations between the REIT and the Subscriber;
(ii) for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to the Canada Revenue Agency;
(iii) disclosure to Securities Commissions and other regulatory bodies with jurisdiction with respect to reports of trades and similar regulatory filings;
(iv) disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;
(v) disclosure to professional advisers of the REIT in connection with the performance of their professional services;
(vi) disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with the prior written consent of the Subscriber;
(vii) disclosure to a court determining the rights of the parties under this Subscription Agreement; or
(viii) use and disclosure as otherwise required or permitted by law. The Subscriber further acknowledges that it has been notified by the REIT:
(i) of the delivery to the applicable securities regulatory authority or regulator of the Subscriber’s personal information (including full name, residential address and telephone number of the Subscriber, the number and type of securities purchased, the total purchase price, the exemption relied upon and the date of distribution); (ii) that the Tokens Subscriber’s personal information is being collected on behalf of the applicable securities regulatory authority or regulator under the authority granted to it in securities legislation; (iii) that the Subscriber’s personal information is being collected for the purposes of the administration and enforcement of the securities legislation of the applicable jurisdiction; and (iv) that public officials in the jurisdictions, as applicable, set out in Schedule B can be contacted regarding any questions about the applicable securities regulatory authority’s or regulator’s indirect collection of personal information.
(t) The Subscriber:
(i) is not a U.S. Person and it is not acquiring the Units for the account or benefit of, a non-discretionary account or similar account of a U.S. Person or for resale in the United States;
(ii) has not been offered pursuant the Units in the United States, this Subscription Agreement has not been signed in the United States, and the individuals making the order to purchase the Memorandum Units and executing and delivering this Subscription Agreement on the Subscriber’s behalf were not in the United States when the order was placed and when this Subscription Agreement was executed and delivered;
(iii) will not offer, sell or otherwise dispose of the Units in the United States or to a U.S. Person unless the REIT has consented to such offer, sale or distribution and such offer, sale or disposition is made in accordance with an exemption from the registration requirements under the U.S. Securities Act and all applicable U.S. Securities Laws or the U.S. Securities and Exchange Commission has declared effective a registration statement in respect of such securities; and
(iv) is aware that the Units have not been and will not be registered under the U.S. Securities Act or any state securities laws; (ii) Blue Sky Laws and that the offering and sale of Units may not be offered or sold, directly or indirectly, in the Tokens is intended to be exempt from United States without registration under the U.S. Securities Act, by virtue or any applicable Blue Sky Laws or compliance with requirements of Section 4(a)(2) thereof, based, in part, upon the representations, warranties an exemption from registration and agreements of the Subscriber contained in this Subscription Agreement; and (iii) acknowledges that the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted REIT has no present intention of filing a registration statement under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if under any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with applicable Blue Sky Laws in respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscribersecurities.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 3 contracts
Samples: Subscription Agreement, Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant By subscribing to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription AgreementOffering, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor(and, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment Shares subscribed for hereby in a fiduciary capacity, the person or persons for whom the Subscriber is so purchasing) represents and knowledge of warrants to the Company, which representations and warranties are true and complete in all material respects, as of the date of each Closing:
(a) The Subscriber has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Agreement and to carry out the provisions thereof. All actions on the Subscriber’s part required for the lawful subscription to the Offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Agreement will be a valid and binding obligation of the Subscriber, enforceable in accordance with its managementterms, cryptoexcept (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.
(b) The Subscriber acknowledges the public availability of the Offering Circular, which can be viewed on the SEC Xxxxx Database under the file number 024-currencies 11056. The Offering Circular describes the terms and other digital asset securities, together with conditions of the Offering and the risks associated therewith are described. The Subscriber has had an opportunity to discuss the Company’s stated objectives.
e. business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities. The Subscriber acknowledges and understands that neither has also had the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerningand its management regarding the terms and conditions of this investment. The Subscriber acknowledges that except as set forth herein, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions no representations or warranties have been answered made to the full satisfaction of the Subscriber and its AdvisorsSubscriber, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation advisors or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if anyrepresentative, by the Company in writingor others with respect to the business or prospects of the Company or its financial condition.
i. (c) The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters to be capable of utilizing the such information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Shares, and to make an informed decision relating thereto. Alternatively, the Subscriber has obtained, utilized the services of a purchaser representative and together they have sufficient experience in the Subscriber’s judgment, sufficient financial and business matters that they are capable of utilizing such information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such the Subscriber’s investment in the Shares, and to make an informed investment decision with respect relating thereto. The Subscriber has evaluated the risks of investing an investment in the TokensShares, is able to bear such risks, including those described in the section of the Offering Circular entitled “Risk Factors,” and has determined that the Tokens are a investment is suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part adequate financial resources for an investment of this character. The Subscriber could bear a complete loss of the Tokens and Subscriber’s investment in the Subscriber has no plans to enter into any such agreement or arrangementCompany.
m. (d) The Subscriber understands that the Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and agrees that it must bear reliance on such exemption is predicated in part on the substantial economic risks truth and accuracy of its investment the Subscriber’s representations and warranties, and those of the other purchasers of the Shares in the Tokens andOffering. The Subscriber further understands that the Shares are not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state, correspondinglysince the Shares are “covered securities” under the National Securities Market Improvement Act of 1996. The Subscriber covenants not to sell, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated transfer or otherwise disposed dispose of any Shares unless subsequently such Shares have been registered under the Securities Act and under applicable state securities laws laws, or an exemption exemptions from such registration is requirements are available. It is not anticipated .
(e) The Subscriber acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will be ever exist. The Company has no obligation to list any of the Shares on any market for or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Tokens, Shares. The Subscriber must bear the economic risk of this investment indefinitely and such securities will not be freely transferable at any timethe Subscriber acknowledges that the Subscriber is able to bear the economic risk of losing the Subscriber’s entire investment in the Shares.
n. (f) The Subscriber has adequate means represents that either: (i) the Subscriber is an “accredited investor” within the meaning of providing Rule 501 of Regulation D under the Securities Act; or (ii) the Purchase Price, together with any other amounts previously used to purchase Shares in the Offering, does not exceed ten percent (10%) of the greater of the Subscriber’s annual income or net worth (or in the case where the Subscriber is a non-natural person, their revenue or net assets for such Subscriber’s current financial needs and foreseeable contingencies and most recently completed fiscal year end). The Subscriber represents that to the extent it has no need for liquidity from any questions with respect to its status as an accredited investor, or the application of the investment in the Tokens for an indefinite period of timelimits, it has sought professional advice.
o. The Subscriber: (ig) if Within five (5) days after receipt of a natural personrequest from the Company, represents that the Subscriber has full power hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and authority to execute and deliver this Subscription Agreement such documents as may reasonably be necessary to comply with any and all other related agreements laws and regulations to which the Company is or certificates may become subject, including, without limitation, the need to determine the accredited investor status of the Company’s stockholders.
(h) The Subscriber acknowledges that the Per Share Purchase Price of the Shares to be sold in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to carry out value. The Subscriber further acknowledges that future offerings of securities of the provisions hereof Company may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.
(i) The Subscriber maintains the Subscriber’s domicile (and thereof; is not a transient or temporary resident) at the address provided with the Subscriber’s subscription.
(j) If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Subscriber’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.
(k) If the Subscriber is purchasing the Shares in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or any other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is Subscriber has been duly organized, validly existing authorized and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority empowered to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out subscription documents. Upon request of the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution Subscriber will provide true, complete and delivery current copies of this Subscription Agreement has been duly authorized by all necessary actionrelevant documents creating the Subscriber, this Subscription Agreement has been duly executed and delivered on behalf authorizing its investment in the Company and/or evidencing the satisfaction of such entity and is a legal, valid and binding obligation of such entity; orthe foregoing.
Appears in 3 contracts
Samples: Series C Preferred Stock Subscription Agreement (20/20 GeneSystems, Inc.), Series C Preferred Stock Subscription Agreement (20/20 GeneSystems, Inc.), Series C Preferred Stock Subscription Agreement (20/20 GeneSystems, Inc.)
Representations and Warranties of the Subscriber. The By subscribing to the Offering, the Subscriber (and, if the Subscriber is purchasing the Shares subscribed for hereby acknowledgesin a fiduciary capacity, the person or persons for whom the Subscriber is so purchasing) represents and warrants toto the Company, which representations and agrees withwarranties are true and complete in all material respects, as of the Company as followsdate of each Closing:
a. (a) The Subscriber has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Agreement and to carry out the provisions thereof. All actions on the Subscriber’s part required for the lawful subscription to the Offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Agreement will be a valid and binding obligation of the Subscriber, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.
(b) The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any public availability of the Company’s investments provided to current Offering Circular, which can be viewed on the Subscriber by SEC Xxxxx Database under the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber filed number . This Offering Circular is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with made available in the Company’s stated objectives.
e. The Subscriber acknowledges most recent qualified offering statement on SEC Form 1-A, as amended, deemed qualified on _______________, 2021. In the Company’s Offering Circular, it makes clear the terms and understands that neither the SEC nor any state securities commission has approved or disapproved conditions of the Offering or passed upon or endorsed and the merits risks associated therewith are described. The Subscriber has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Tokens or Company and has had the Offering.
f. opportunity to review the Company’s operations and facilities. The Subscriber and its Advisors, if any, have has also had a reasonable the opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerningand its management regarding the terms and conditions of this investment. The Subscriber acknowledges that except as set forth herein, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions no representations or warranties have been answered made to the full satisfaction of the Subscriber and its AdvisorsSubscriber, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation advisors or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if anyrepresentative, by the Company in writingor others with respect to the business or prospects of the Company or its financial condition.
i. (c) The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters to be capable of utilizing the such information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Shares, and to make an informed decision relating thereto. Alternatively, the Subscriber has obtained, utilized the services of a purchaser representative and together they have sufficient experience in the Subscriber’s judgment, sufficient financial and business matters that they are capable of utilizing such information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such the Subscriber’s investment in the Shares, and to make an informed investment decision with respect relating thereto. The Subscriber has evaluated the risks of investing an investment in the TokensShares, is able to bear such risks, including those described in the section of the Offering Circular entitled “Risk Factors,” and has determined that the Tokens are a investment is suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part adequate financial resources for an investment of this character. The Subscriber could bear a complete loss of the Tokens and Subscriber’s investment in the Subscriber has no plans to enter into any such agreement or arrangementCompany.
m. (d) The Subscriber understands that the Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and agrees that it must bear reliance on such exemption is predicated in part on the substantial economic risks truth and accuracy of its investment the Subscriber’s representations and warranties, and those of the other purchasers of the Shares in the Tokens andOffering. The Subscriber further understands that the Shares are only being registered under the securities laws of certain states, correspondinglybut not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state, since the business objectives Shares are “covered securities” under the National Securities Market Improvement Act of the Company1996. The Subscriber covenants not to sell, indefinitely because the Tokens may not be sold, hypothecated transfer or otherwise disposed dispose of any Shares unless subsequently such Shares have been registered under the Securities Act and under applicable state securities laws laws, or an exemption exemptions from such registration is requirements are available. It is not anticipated .
(e) The Subscriber acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will be ever exist. The Company has no obligation to list any of the Shares on any market for or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Tokens, Shares. The Subscriber must bear the economic risk of this investment indefinitely and such securities will not be freely transferable at any timethe Subscriber acknowledges that the Subscriber is able to bear the economic risk of losing the Subscriber’s entire investment in the Shares.
n. (f) The Subscriber has adequate means represents that either: (i) the Subscriber is an “accredited investor” within the meaning of providing Rule 501 of Regulation D under the Securities Act; or (ii) the Purchase Price, together with any other amounts previously used to purchase Shares in the Offering, does not exceed ten percent (10%) of the greater of the Subscriber’s annual income or net worth (or in the case where the Subscriber is a non-natural person, their revenue or net assets for such Subscriber’s current financial needs and foreseeable contingencies and most recently completed fiscal year end). The Subscriber represents that to the extent it has no need for liquidity from any questions with respect to its status as an accredited investor, or the application of the investment in the Tokens for an indefinite period of timelimits, it has sought professional advice.
o. The Subscriber: (ig) if Within five (5) days after receipt of a natural personrequest from the Company, represents that the Subscriber has full power hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and authority to execute and deliver this Subscription Agreement such documents as may reasonably be necessary to comply with any and all other related agreements laws and regulations to which the Company is or certificates may become subject, including, without limitation, the need to determine the accredited investor status of the Company’s stockholders.
(h) The Subscriber acknowledges that the Per Share Purchase Price of the Shares to be sold in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to carry out value. The Subscriber further acknowledges that future offerings of securities of the provisions hereof Company may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.
(i) The Subscriber maintains the Subscriber’s domicile (and thereof; is not a transient or temporary resident) at the address provided with the Subscriber’s subscription.
(j) If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Subscriber’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.
(k) If the Subscriber is purchasing the Shares in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or any other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is Subscriber has been duly organized, validly existing authorized and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority empowered to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out subscription documents. Upon request of the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution Subscriber will provide true, complete and delivery current copies of this Subscription Agreement has been duly authorized by all necessary actionrelevant documents creating the Subscriber, this Subscription Agreement has been duly executed and delivered on behalf authorizing its investment in the Company and/or evidencing the satisfaction of such entity and is a legal, valid and binding obligation of such entity; orthe foregoing.
Appears in 3 contracts
Samples: Subscription Agreement (Traccom Inc.), Subscription Agreement (Traccom Inc.), Subscription Agreement (Traccom Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens Partnership Interest is offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt an exemption from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon . In connection therewith the Subscriber makes the following representations, warranties and agreements acknowledgements, realizing that they are being relied upon by the Company for purposes of determining the Subscriber's suitability as an investor in the Company and compliance by the Company with applicable Federal and state securities laws and regulations:
(a) The Subscriber has read the Confidential Private Placement Memorandum entitled "America's Health Network, G.P." and dated August 1995, together with the supplement thereto dated March 18, 1996 (as so amended, the "Memorandum") and the Forecast Financial Statements of AHN Partners, L P. (together with assumptions) dated March 29, 1996 (the "Forecast"). The Subscriber has such knowledge and expertise in financial and business matters that the Subscriber is capable of evaluating the merits and risks of an investment in the Partnership Interest and the Subscriber is able to bear the economic risk of investment in the Company Interest and the complete loss of the Subscriber's investment.
(b) The Subscriber contained in this Subscription Agreement; has received and (iii) read or reviewed and is familiar with the Tokens are subject Partnership Agreement and such other documents which relate to restrictions on transferability its subscription for the Partnership Interest, and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior confirms that all documents, agreements, records and books pertaining to the execution of this Subscription Agreement, investment in the Subscriber Company and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber have been made available or its Advisors, if any, and understand delivered to the information contained therein. Subscriber.
(c) The Subscriber is satisfied that it has received adequate information obtained, to the extent the Subscriber has deemed necessary, the Subscriber's own personal professional advice with respect to all matters which it or its Advisorsthe risks inherent in investment in the Partnership Interest, if anythe suitability of such investment in light of the Subscriber's financial condition and investment needs, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history legal, tax and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such informationaccounting matters.
c. The (d) In connection with the Subscriber's acquisition of the Partnership Interest, the Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of afforded the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf representatives of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents General Partner and from persons authorized to act on the Company’s objectives 's behalf concerning (i) the terms and all such questions have been answered to conditions of this investment, and (ii) the full satisfaction of the Subscriber Company and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. operations. In evaluating the suitability of an investment in the Companyaddition, the Subscriber has not relied upon been afforded the opportunity to obtain any representation additional information which the Company possesses or other information (oral could acquire without unreasonable effort or written) other than as stated in the Offering Documents or as contained in documents so furnished to expense which the Subscriber or its Advisors, if any, requires in order to verify the accuracy of the information provided by the Company in writingCompany.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. (e) The Subscriber understands that future operating results of the Company are subject to events over which the Company will have only partial or no control and agrees that it must bear the substantial economic risks of its investment to various uncertainties inherent in the Tokens and, correspondingly, Company's activities. No representation has been made or could be made as to the business objectives amount of future profits or losses of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. (f) The Subscriber has adequate means of providing for such Subscriber’s its current financial needs and foreseeable contingencies and possible business contingencies, has no need for liquidity from its of investment in the Tokens Partnership Interest and has no reason to anticipate any change in business circumstances, financial or otherwise, which may cause or require any sale or distribution of the Partnership Interest.
(g) The Subscriber understands that investment in the Company is an illiquid investment. In particular, the Subscriber recognizes that:
(i) The Subscriber must bear the economic risk of investment in the Partnership Interest for an indefinite period of time, since the Partnership Interest has not been registered under the Securities Act, and, therefore, cannot be sold unless either it is subsequently registered under the Securities Act or an exemption from such registration is available and a favorable opinion of counsel for the Partnership to that effect is obtained (if requested by the General Partner);
(ii) The Subscriber will not have the right to require registration of the Partnership Interest under the Securities Act and will not be entitled to the benefits of Rule 144 thereunder, and
(iii) No established market for the Partnership Interest will exist and it is extremely unlikely that any public market for the Partnership Interest will develop.
o. (h) The Subscriber: Subscriber represents that the Partnership Interest is being purchased by it or for its own account, for purposes of investment and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or beneficial interest in the Partnership Interest. The Subscriber understands and acknowledges that the Partnership Interest has not been registered under the Securities Act or under state laws.
(i) if a natural personThe Subscriber, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization trust or other entity, represents is authorized and otherwise duly qualified to purchase and hold the Partnership Interest and to enter into this Admission Agreement.
a) All information which the Subscriber has provided to the Company concerning the Subscriber's financial position and knowledge of financial and business matters, or, in the case of a corporation, partnership, trust or other entity, concerning the knowledge of financial and business matters of the person(s) making the investment decision on behalf of such entity, is correct and complete as of the date set forth on the signature page hereof, and if there should be any adverse change in such information prior to his, her, or its subscription being accepted, he, she, or it will immediately provide the Company with such information.
(k) The Subscriber acknowledges and is aware that such the Company has no financial operating history; this is the Company's first venture; and the Partnership Interest involves a high degree of risk of loss by the Subscriber of its entire investment in the Company.
(l) The Subscriber is an "accredited investor" as defined in Rule 501 under the Securities Act, inasmuch as the Subscriber is: (Please initial all applicable descriptions) ____ An entity with total assets at the time of purchase in excess of $5,000,000, which was not formed for the specific purpose of acquiring investing in the Tokens, such entity Company and which is duly organized, validly existing and in good standing under the laws one or more of the state of its organization, the consummation following: ____ corporation; ____ partnership; ____ limited liability company; or ____ a tax-exempt organization as described in Section 501(c)(3) of the transactions contemplated hereby is authorized byInternal Revenue Code of 1986, as amended. ____ A personal (non-business) trust with total assets in excess of $5,000,000, which was not formed for the purpose of investing in the Company and will not result whose decision to invest in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement Company has been duly authorized directed by a person who has such knowledge and experience in ____ financial and business maKers that he is capable of evaluating the merits and risks of the investment. ____ Licensed, or subject to supervision, by U.S. Federal or state examining authorities as a "bank," "savings and loan association," "insurance company" or "small business investment company" (as such terrns are used and defined in 17 CFR 230.501(a)). ____ Registered with the U.S. Securities and Exchange Commission (the "Commission") as a broker or dealer or an investment company, or has elected to be treated or qualifies as a "business development company" (within the meaning of Section 2(a)(48) of the Investment Company Act of 1940 or Section 202(a)(22) of the Investment Advisers Act of 1940). ____ Any other entity in which all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orthe equity owners are persons described above.
Appears in 3 contracts
Samples: Admission Agreement (Providence Journal Co), Admission Agreement (Providence Journal Co), Admission Agreement (Providence Journal Co)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgescovenants, represents and warrants to, and agrees with, to the Company as follows, and acknowledges that the Company is relying upon such covenants, representations and warranties in connection with the sale of the Securities to such Subscriber:
a. 4.1. The Subscriber acknowledges that an investment in the Company is highly speculative, and understands: (i) that involves a high degree of risk as the Tokens offered pursuant Company is in the early stages of developing its business, and may require substantial funds in addition to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution proceeds of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if anyprivate placement, and understand that only subscribers who can afford the information contained thereinloss of their entire investment should consider investing in the Company. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes an investor in securities of businesses in the development stage and acknowledges that the Company has a limited financial and operating history and that Subscriber is able to fend for himself/herself/itself, can bear the Company’s proposed investments in Digital Asset Securities involve a high degree economic risk of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understandsSubscriber's investment, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and financial or business matters, and, in particular, investment in non-listed and unregistered securities, matters such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s an investment in the Tokens and has obtainedCompany’s securities as contemplated in this Agreement.
4.2. If the Subscriber is not an individual, in it was not organized for the Subscriber’s judgment, sufficient information from purpose of acquiring the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect theretoSecurities.
4.3. The Subscriber has evaluated had full opportunity to review the risks Company’s periodic filings with the SEC pursuant to the Exchange Act, including, but not limited to, the Company’s annual reports, quarterly reports, current reports and additional information regarding the business and financial condition of investing in the Tokens, is able Company. The Subscriber has had full opportunity to bear such risksask questions and receive answers from the Company regarding this information, and to review and discuss this information with the Subscriber's legal and financial advisors. The Subscriber believes he/she/it has determined received all the information he/she/it considers necessary or appropriate for deciding whether to purchase the Securities and that the Tokens Subscriber has had full opportunity to discuss this information with the Subscriber’s legal and financial advisors prior to executing this Agreement.
4.4. The Subscriber acknowledges that the offering of the Units by the Company has not been reviewed by the SEC and that the Securities are being and will be, issued by the Company pursuant to an exemption from registration under the Securities Act.
4.5. The Subscriber understands that the Securities will be characterized as "restricted securities" under the Securities Act as they are being acquired from the Company in a suitable transaction not involving a public offering and that, under the Securities Act and the regulations promulgated thereunder, such securities may be resold without registration under the Securities Act only in certain limited circumstances. The Subscriber represents that the Subscriber is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.
4.6. The Securities are being and will be acquired by the Subscriber for investment for the Subscriber.
k. The Subscriber is 's own account, not relying on the Company as a nominee or any of its directorsagent, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to the resale or distribution of any part thereof, in whole and that the Subscriber has no present intention of selling, granting any participation in, or in partotherwise distributing the same. The Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities.
4.7. The Subscriber is not aware of any advertisement or general solicitation regarding the offer or sale of the Company’s securities.
4.8. This Agreement has been duly authorized, validly executed and delivered by the Subscriber.
4.9. The Subscriber has no agreement or arrangement, formal or informal, satisfied himself/herself/itself as to the full observance of the laws of the Subscriber's jurisdiction in connection with any person invitation to sell or transfer all subscribe for the Securities or any part use of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens andthis Agreement, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: including (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out legal requirements within the provisions hereof and thereofSubscriber's jurisdiction for the purchase of the Securities; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization any foreign exchange restrictions applicable to such purchase; (iii) any governmental or other entityconsents that may need to be obtained; (iv) the income tax and other tax consequences, represents if any, that may be relevant to an investment in the Securities; and (v) any restrictions on transfer applicable to any disposition of the Securities imposed by the jurisdiction in which the Subscriber is resident.
4.10. If the Subscriber is a financial institution (including, without limitation, broker-dealers and investment companies such entity was not formed for as United States and offshore unregistered hedge funds, funds of funds, commodity pools, private equity funds and venture capital funds):
(a) The Subscriber seeks to comply with all applicable laws concerning money laundering and related activities, including without limitation, the specific purpose Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of acquiring 2001 (the Tokens“USA Patriot Act”);
(b) In furtherance of such efforts, such entity to the best of its knowledge based on appropriate diligence and investigation, none of the funds used by the Subscriber to purchase the Securities has been or will be derived from or related to any activity that is duly organized, validly existing and in good standing deemed criminal under the laws of the state of its organizationUnited States or in any other applicable jurisdiction, and
(c) The Subscriber will promptly notify the consummation Company if the Subscriber discovers that any of the transactions contemplated hereby is authorized byrepresentations in this Section 4.10 ceases to be true, and will not result to provide the Company with appropriate information in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orconnection therewith.
Appears in 2 contracts
Samples: Subscription Agreement (Ireland Inc.), Subscription Agreement (Ireland Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesrepresents, represents and warrants to, and agrees with, the Company as followsthat:
a. (a) The Subscriber acknowledges has all requisite power and understands: authority to execute and deliver this Agreement and any and all instruments necessary or appropriate in order to effectuate fully the terms and conditions of this Agreement and to perform and consummate his obligations hereunder. This Agreement has been duly and validly executed and delivered by the Subscriber and constitutes a valid and legally binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms and conditions, except as enforceability thereof may be limited by any applicable bankruptcy, reorganization, insolvency or other laws affecting creditors’ rights generally or by general principles of equity.
(b) The execution, delivery and performance of this Agreement by the Subscriber does not (i) that violate, conflict with, or constitute a breach of or default under any agreement to which the Tokens offered pursuant Subscriber is a party or which he is bound or (y) violate any law, regulation, order, writ, judgment, injunction or decree applicable to the Memorandum have not been and will not be registered under the Securities Act Subscriber. No consent or approval of, or filing with, any state securities laws; (ii) that the offering and sale of the Tokens governmental or regulatory body is intended required to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred obtained or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested made by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits execution and risks delivery of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriberthis Agreement.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. (c) The Subscriber is acquiring the Tokens solely Purchased Shares for Subscriber’s his own account account, for investment and not with a view to resale the sale or distribution thereof, nor with any present intention of distributing or selling the same. The Purchased Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, consequently, the materials relating to the offer have not been subject to review and comment by the staff of the Securities and Exchange Commission or any other governmental authority. Furthermore, there is not now and there may never be any public market for the Purchased Shares. Rule 144 promulgated under the Securities Act is not presently available with respect to the sale of any Purchased Shares.
(d) The Subscriber is an “accredited investor,” as such term is defined in whole or Rule 501(a) of Regulation D promulgated under the Securities Act and, in partconnection with the execution of this Agreement, the Subscriber agrees to deliver such certificates to that effect as the board of directors of the Company may request.
(e) The Subscriber has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of the Purchased Shares and has had full access to such other information concerning the Company as he has requested. The Subscriber’s knowledge and experience in financial and business matters is such that he is capable of evaluating the merits and risk of the investment in the Purchased Shares. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part carefully reviewed the terms and provisions of this Agreement and has evaluated the restrictions and obligations contained herein. In furtherance of the Tokens foregoing, the Subscriber represents and warrants that (i) no representation or warranty, express or implied, whether written or oral, as to the financial condition, results of operations, prospects, properties or business of the Company or as to the desirability or value of an investment in the Company has been made to the Subscriber by or on behalf of the Company, (ii) the Subscriber has relied upon his own independent appraisal and investigation, and the advice of his own counsel, tax advisors and other advisors, regarding the risks of an investment in the Company and (iii) the Subscriber will continue to bear sole responsibility for making his own independent evaluation and monitoring of the risks of his investment in the Company.
(f) The Subscriber’s financial situation is such that the Subscriber can afford to bear the economic risk of holding the Purchased Shares for an indefinite period and the Subscriber has no plans can afford to enter into any such agreement or arrangementsuffer the complete loss of his investment in the Purchased Shares.
m. (g) The Subscriber is not subscribing for the Purchased Shares as a result of or subsequent to any advertisement, article, notice or other communication published in any newspapers, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by a person or entity not previously known to the Subscriber in connection with investments in securities generally.
(h) The Subscriber understands and agrees acknowledges that it must bear (i) he is being issued the substantial economic risks Purchased Shares as part of its investment in the Tokens and, correspondingly, the business objectives a written compensatory contract pursuant to Rule 701 of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act for services to the Company and applicable state securities laws its affiliates, and (ii) he or she would not be issued the Purchased Shares if he or she were not an exemption from such registration is available. It is not anticipated that there will be any market for resale employee or director of the Tokens, and such securities Company or one of its affiliates.
(i) The Subscriber hereby acknowledges that any investment gain attributable to ownership of the Purchased Shares will not be freely transferable at taken into consideration for any timecompensation purpose.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Subscription Agreement (South Texas Supply Company, Inc.), Subscription Agreement (South Texas Supply Company, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees covenants with, the Company as follows, with effect as of the date hereof and as of the Tier 1 Closing Time and, if applicable and only with respect to the Fundamental Subscriber Representations and Warranties, the Tier 2 Closing, and acknowledges that the Company is relying on such representations and warranties in connection with the transactions contemplated herein:
a. (a) the Subscriber certifies that it is resident in the jurisdiction set out on the face page of this Subscription Agreement. Such address was not created and is not used solely for the purpose of acquiring the Offered Shares and the Subscriber was solicited to purchase, and accepted such offer to purchase the Offered Shares, in such jurisdiction;
(b) as of the date of execution of this Subscription Agreement and as of the Tier 1 Closing Time and, if applicable, the Tier 2 Closing Time, as the case may be, the Subscriber is an “accredited investor” as defined in Rule 501(a) of Regulation. The Subscriber acknowledges agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and understands: securities laws in connection with the purchase and sale of the Offered Shares;
(ic) that the Tokens offered pursuant current structure of this transaction and all transactions and activities contemplated hereunder is not a scheme to avoid the Memorandum registration requirements of the U.S. Securities Act;
(d) the Subscriber will not offer, sell or otherwise dispose of the Offered Shares unless such offer, sale or disposition is made in accordance with an exemption from the registration requirements of the U.S. Securities Act and the Securities Laws of all applicable states of the United States or the SEC has declared effective a registration statement in respect of such securities. The Offered Shares have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the U.S. Securities Act and may not be transferred offered or resold except as permitted sold unless registered under the U.S. Securities Act or as allowed by exemptions within an exemption from the jurisdiction registration requirements of the Subscriber or receiver of the Tokens.U.S. Securities Act is available;
b. Prior to (e) the execution and delivery of this Subscription Agreement, the Subscriber performance and compliance with the terms hereof, the subscription for the Offered Shares and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed completion of the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested transactions by the Subscriber described herein will not result in any material breach of, or its Advisorsbe in conflict with or constitute a material default under, if anyor create a state of facts which, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it after notice or its Advisorslapse of time, if anyor both, consider would constitute a material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no default under any term or very limited disclosure materials of any kind regarding any provision of the Company’s investments provided to constating documents, by-laws or resolutions of the Subscriber by Subscriber, the Company Securities Laws or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except Laws applicable to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished agreement to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available a party, or any Order, statute, rule or regulation applicable to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s ;
(f) the Subscriber is subscribing for the Offered Shares as principal for its own account, for investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such riskspurposes, and has determined that the Tokens are a suitable investment not for the Subscriber.
k. The Subscriber is not relying on benefit of any other person (within the Company or any meaning of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment applicable Securities Laws) and not with a view to to, or for resale or in connection with, any distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens Offered Shares;
(g) this Subscription Agreement (and all other documentation in connection with such subscription) has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding agreement of, the Subscriber, enforceable against the Subscriber in accordance with its terms, provided that enforcement thereof may be limited by Laws affecting creditors’ rights generally;
(h) the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power necessary legal capacity and authority to execute and deliver this Subscription Agreement and to observe and perform its covenants and obligations hereunder and has obtained all necessary approvals in respect thereof;
(i) there is no person acting or purporting to act at the request of the Subscriber who is entitled to any brokerage or finder’s fee;
(j) the Subscriber has not received or been provided with a prospectus, offering memorandum, within the meaning of the Securities Laws in Canada, or any sales or advertising literature in connection with the Offering and the Subscriber’s decision to subscribe for the Offered Shares was not based upon, and the Subscriber has not relied upon, any representations as to facts made by or on behalf of the Company, other related agreements than the representations and warranties of the Company under this Subscription Agreement;
(k) no person has made any written or certificates and to carry out oral representations:
(i) that any person will resell or repurchase the provisions hereof and thereof; Offered Shares;
(ii) that any person will refund the Tier 1 Subscription Amount or, if applicable, the Tier 2 Subscription Amount; or
(iii) as to the future price or value of the Offered Shares; and
(l) the offering and issue of the Offered Shares has not been made or solicited through or as a corporationresult of, partnershipand the distribution of the Offered Shares is not being accompanied by any advertisement, including without limitation in printed public media, radio, television or telecommunications, including electronic display, or limited liability company as part of a general solicitation or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for general advertising with respect to the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orOffering.
Appears in 2 contracts
Samples: Subscription Agreement (Arbutus Biopharma Corp), Subscription Agreement (Roivant Sciences Ltd.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to and agrees with, covenants with the Company as follows:
a. The Subscriber acknowledges and understands: Corporation (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the which representations, warranties and agreements covenants will be true and correct as at the time of delivery of Shares with the same force and effect as if they had been made by the Subscriber at such time, and shall survive the Closing) that:
(a) the Subscriber is not a U.S. Person;
(b) the Subscriber is acquiring the Shares as a principal (and not as an agent) for investment purposes only, with no intention or view to reselling or distributing any portion or beneficial interest in the Shares, and the Subscriber will be the beneficial owner of any Shares to be issued to the Subscriber if, as and when this Subscription is accepted by the Corporation in whole or in part;
(c) the Subscriber is resident in the jurisdiction identified in the address of the Subscriber contained in this Subscription Agreement; and (iii) set forth on the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution cover page of this Subscription Agreement, which address is the residence or place of business of the Subscriber and was not created or used solely for the purpose of acquiring the Shares;
(d) if the Subscriber is resident outside of Canada:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and sale of the Shares,
(ii) the Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Corporation to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Shares,
(iv) the purchase of the Shares by the Subscriber does not trigger:
A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or B. any continuous disclosure reporting obligation of the Corporation in the International Jurisdiction,
(v) the Subscriber will, if requested by the Corporation, deliver to the Corporation a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Corporation, acting reasonably, and
(vi) if it is a resident of the United Kingdom, it is a person of the kind described in Article 19 or 49(2)(a) to (e) of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 and is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of its business;
(e) the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber’s attorney, accountant, purchaser representative and/or tax advisoror, if any the Subscriber is a partnership, syndicate or other form of unincorporated organization, the Subscriber has all necessary approvals of relevant parties to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
(collectively, “Advisors”), have received and have carefully reviewed f) the Memorandum, entering into of this Subscription Agreement and the documents annexed hereto or referenced herein (collectivelytransactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the “Offering Documents”constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly completed, executed and any other delivered to the Corporation, as applicable, all securities forms, undertakings, questionnaires and all other documents requested by the Subscriber or its Advisors, if any, and understand Corporation in order to enable the information contained therein. The Subscriber is satisfied that it has received adequate information with respect Corporation to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that determine the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability availability of an investment in the Company, Exemption pursuant to section 3.2 hereof;
(h) the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is affairs as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s investment in the Tokens Shares and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear the economic risk of loss of such risksinvestment;
(i) the Subscriber has read the Offering Memorandum and has had the opportunity to ask questions of, and has determined that receive answers from, the Tokens are Corporation, or a suitable investment for person authorized to act on behalf of either the Subscriber.Corporation, concerning the business and affairs of the Corporation and the attributes of the Shares which the Subscriber deems necessary and appropriate;
k. The (j) in investing in the Shares, the Subscriber is not relying solely on the Company representations and warranties contained in the Offering Memorandum;
(k) the Subscriber has sought no advice in relation to the investment in the Shares from the Corporation, the Manager, or any of its directorsaffiliates, officersassociates, employeesagents, agents employees or other representatives with respect and neither the Corporation nor any of its affiliates, associates, agents, employees or representatives has provided any advice to the legal, tax, economic and related considerations of an investment Subscriber in the Tokensrelation to such purchase, and the Subscriber has relied on the advice of, or has consulted with, only been advised to consult with its own Advisors, if any.advisers with respect to an investment in the Shares;
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and (l) the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands duly executed and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
(m) none of the funds being used to purchase the Shares are, to the Subscriber’s knowledge, proceeds obtained or derived directly or indirectly as a result of illegal activities. The funds being used to purchase the Shares which will be advanced, directly or indirectly, by or on behalf of the Subscriber to the Corporation or to the account of the Corporation hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) (or any other legislation of a similar nature of an International Jurisdiction) and the Subscriber acknowledges that the Corporation may in the future be required by law to disclose the Subscriber’s (including each disclosed principal’s) name and other information relating to this Subscription Agreement and the Subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the Subscriber’s knowledge, none of the funds to be provided by the Subscriber (or, for certainty the disclosed principal, if any), are being tendered on behalf of a person or entity who has not been identified to the Subscriber, and the Subscriber shall promptly notify the Corporation if the Subscriber discovers that any of such representations cease to be true, and shall promptly provide the Corporation with all other related agreements necessary information in connection therewith; and
(n) the Subscriber acknowledges that the representations and warranties contained in this Subscription Agreement, including, as applicable, any acknowledgements or certificates attached as Schedules and Appendices hereto, are made by the Subscriber with the intention that they may be relied upon by the Corporation and its legal counsel in determining the Subscriber’s eligibility to carry out acquire the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents Shares under relevant Legislation. The Subscriber further agrees that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws by accepting delivery of the state of its organizationShares, the consummation Subscriber will be representing and warranting that the foregoing representations and warranties are true and correct as at the time of delivery of such Shares with the same force and effect as if they had been made by the Subscriber at such time, and that they shall survive the completion of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver under this Subscription Agreement and all other related agreements or certificates remain in full force and to carry out effect thereafter for the provisions hereof and thereof and to purchase and hold benefit of the Tokens, the execution and delivery Corporation for a period of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orone year.
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as of the date hereof and as of the Closing Date as follows:
a. The Subscriber acknowledges and understands: (ia) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to an Eligible Holder and holds, and at all matters which it or its Advisorstimes during the Rights Exercise Period held, if anythe aggregate Applicable Claims, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Companyas applicable, set forth on Item 1 of such Subscriber’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such informationSubscription Form.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. (b) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents requisite corporate or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates the Subscription Form and to carry out perform its obligations hereunder and thereunder. This Agreement and the provisions hereof consummation by the Subscriber of the transactions contemplated hereby have been duly authorized by all requisite action. This Agreement has been duly and thereof; (ii) if validly executed and delivered by the Subscriber and constitutes the valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and equitable principles generally applicable. Except to the extent the Subscriber is an individual, the Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such duly organized entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state jurisdiction of its organizationincorporation or formation.
(c) Except as provided under applicable state securities laws and subject to the conditions contained in Section 6, this subscription is and shall be irrevocable, except that the Subscriber shall have no obligation hereunder if this Agreement is for any reason rejected or terminated, or the Rights Offering is for any reason terminated, except with respect to the Rights Offering Commitment Parties as set forth in the Commitment Agreement.
(d) The Subscriber has read and understands this Agreement, the consummation of Plan, the transactions contemplated hereby Disclosure Statement, the Rights Offering Procedures and the Subscription Form and understands the terms and conditions herein and therein and the risks associated with the Company and its business as described in the Disclosure Statement. The Subscriber has, to the extent deemed necessary by the Subscriber, discussed with legal counsel the representations, warranties and agreements that the Subscriber is authorized bymaking herein.
(e) No third-party consents or approvals (including governmental consents or approvals) are required to be obtained, and will not result made or given in a violation of state law or its charter or other organizational documents, such entity has full power and authority order to permit the Subscriber to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, perform its obligations hereunder.
(f) Neither the execution and delivery of this Agreement by the Subscriber nor the consummation of any of the transactions contemplated hereby will violate or conflict with, or result in a breach of, or constitute a default under (whether upon notice or the passage of time or both) any (i) contract to which the Subscriber is a party, (ii) applicable laws, regulations, orders, judgments and decrees to which the Subscriber is subject, or (iii) the organizational documents of the Subscriber, if applicable.
(g) The Subscriber is not relying upon any information, representation or warranty by the Company other than as set forth in this Agreement, the Plan, or the Disclosure Statement or, if applicable, the Commitment Agreement. The Subscriber has consulted, to the extent deemed appropriate by the Subscriber, with the Subscriber’s own advisors as to the financial, tax, legal and related matters concerning an investment in the Rights Offering Shares and on that basis believes that an investment in the Rights Offering Shares is suitable and appropriate for the Subscriber.
(h) The Subscriber is an Eligible Holder and the Eligible Holder Certification (item 2e of the Subscription Form) completed by the Subscriber sets forth a true, correct and complete statement of the Subscriber’s Eligible Holder status.
(i) The Subscriber is acquiring the Rights Offering Shares solely for its own account or for the account of an Affiliate of the Subscriber for investment and neither with a view toward, nor any present intention of, Transferring the Rights Offering Shares in violation of applicable securities laws. No other Person has any right with respect to or interest in the Rights Offering Shares to be purchased by the Subscriber, nor has the Subscriber agreed to give any other Person any such interest or right in the future.
(j) The Subscriber is not a party to any contract with any Person that would give rise to a valid Claim against the Debtors for a brokerage commission, finder’s fee or like payment in connection with the Subscriber’s investment in the Company (other than the Commitment Agreement has been duly authorized (if applicable) and all other agreements to which it will be a party as contemplated by all necessary actionthe Commitment Agreement (if applicable) and the Plan and any contract giving rise to expense reimbursement thereunder, if applicable).
(k) The foregoing representations and warranties will be true on the date hereof and as of the Closing Date and will survive delivery of this Subscription Agreement has been duly executed and delivered on behalf Agreement. If any of such entity representations and warranties is a legalnot true prior to acceptance of this Agreement by the Company or prior to the Closing Date, valid and binding obligation the Subscriber will give written notice of such entity; orfact to the Company, specifying which representations and warranties are not true and the reasons therefor.
Appears in 2 contracts
Samples: Rights Offering Subscription Agreement, Rights Offering Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company the following:
3.1 The Subscriber recognizes that the purchase of the Notes involves a high degree of risk in that (i) the Company will need additional capital but has no assurance of additional necessary capital; (ii) an investment in the Notes is highly speculative and only investors who can afford the loss of their entire investment should consider investing in the Notes; (iii) an investor may not be able to liquidate his, her or its investment; (iv) transferability of the Notes is extremely limited; (v) an investor could sustain the loss of his, her or its entire investment; and (vi) the Company is and will be subject to numerous other risks and uncertainties, including without limitation, significant and material risks relating to the Company’s business, and agrees withthe industries and markets in which the Company will operate, as well as risks associated with the Offering.
3.2 Pursuant to federal securities laws and regulations, the Company may offer the opportunity to invest in the Note only to accredited investors. The Subscriber qualifies as follows:an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Act”) because Subscriber is: * For purposes of this item, "net worth" means the EXCESS of total assets (such as cash, stock, securities, personal property and real estate) at fair market value, whether liquid or illiquid, and excluding the value of such person’s principal residence, but including home furnishings and automobiles, OVER total debts and liabilities (other than a mortgage or other debt secured by such person’s principal residence). In the event that the amount of any mortgage or other indebtedness secured by such person’s principal residence exceeds the fair market value of such person’s principal residence, such excess liability should also be deducted from such person’s net worth. Any mortgage or indebtedness secured by such person’s principal residence within 60 days before the time of the purchase of securities offered hereunder, other than as a result of the acquisition of the primary residence, shall also be deducted from such person’s net worth. The Company will request confirmation of the Subscriber’s assertion of accredited investor status through relevant documentation which may include, but not limited to, a copy of the Subscriber’s tax returns filed with the Internal Revenue Service, bank statements or brokerage statements, or written confirmation from a licensed attorney, a certified public accountant stating that such person has taken reasonable steps to verify that the Purchase is an accredited investor within the last three months and has determined such person is an accredited investor, or other documentation that the Company considers reasonable to verify Subscriber’s accredited investor status. At the Company’s discretion, the Subscriber shall a) complete and return to the Company an investor questionnaire provided by the Company or b) submit relevant documentation to the Company and/or a third-party verification service, such as Veri- Tax. The Subscriber agrees to provide any additional documentation the Company may reasonably request, or as may be required by the securities administrators or regulators of any state, to confirm that the Subscriber meets any applicable minimum financial suitability standards and has satisfied any applicable maximum investment limits.
a. 3.3 The Subscriber acknowledges that the Subscriber has reviewed all of the documents furnished or made available by the Company to evaluate the merits and risks of an investment in the Notes, and that the Subscriber recognizes the highly speculative nature of this investment.
3.4 The Subscriber acknowledges and understands: (i) represents that the Tokens offered pursuant Subscriber has been furnished or given access by the Company with or to all information regarding the Memorandum Company and its respective financial condition and results of operations which the Subscriber had requested or desired to know; that all documents which could be reasonably provided have been made available for the Subscriber’s inspection and review; that the Subscriber has been afforded the opportunity to ask questions of and receive answers from duly authorized representatives of the Company concerning the terms and conditions of the purchase of the Notes, and any additional information which the Subscriber had requested.
3.5 The Subscriber acknowledges that this Subscription for the Notes may involve tax consequences, and that the contents of this Agreement do not contain tax advice or information. The Subscriber acknowledges that the Subscriber must retain the Subscriber’s own professional advisors to evaluate the tax and other consequences of an investment in the Notes.
3.6 The Subscriber acknowledges that this Offering has not been reviewed or approved by the United States Securities and will not be registered under the Securities Act Exchange Commission (“SEC”) or any state securities laws; (ii) that regulators because the offering and sale of the Tokens Offering is intended to be exempt from registration a nonpublic offering pursuant to Section 3(b) and/or 4(2) of the Act and Regulation D promulgated under the Securities Act. The Subscriber represents that the Notes are being purchased for the Subscriber’s own account, by virtue of Section 4(a)(2) thereof, based, in part, upon for investment and not for distribution or resale to others. The Subscriber acknowledges and understands that the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens Notes are subject to restrictions on upon transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws pursuant to registration, qualification or exemption therefrom.
3.7 The Subscriber understands that the claimed exemption under the provisions of the Act depends, in part, upon the Subscriber’s investment intention. The Subscriber realizes that, in the view of the SEC, a purchase now with the intention to distribute would represent a purchase with an intention inconsistent with the Subscriber’s representation to the Company, and the SEC might regard such a distribution as a deferred sale to which such exemption from such registration is not available. It The Subscriber agrees to hold the Company and its respective directors, officers and controlling persons and their respective heirs, representatives, successors and assigns harmless and to indemnify them against all liabilities, costs and expenses incurred by them as a result of any misrepresentation made by the Subscriber contained herein.
3.8 The Subscriber understands that the Company has not been registered under the Investment Company Act of 1940, as amended. In addition, the Subscriber understands that the Company is not anticipated that there will be any market for resale registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
3.9 The Subscriber understands the Tokens, and such securities exemption under Rule 144 promulgated under the Act will not be freely transferable at generally available because of the conditions and limitations of such rule, that the Company has no obligation and does not intend to take any time.
n. action to make available such exemption or any other exemption under the Act, and that because of the unavailability of such exemption, any disposition by the Subscriber of the Notes may require compliance with some other exemption under the Act. The Subscriber has adequate means understands that there are substantial restrictions on the transferability of providing the Notes and that there is no public market for such Subscriber’s current financial needs the Notes, and foreseeable contingencies and has no need for liquidity from its investment none is expected to develop in the Tokens near future. Consequently, the Subscriber understands that it must bear the economic risk of this investment for an indefinite period of time, and that it may not be possible for the Subscriber to liquidate readily any investment in the Notes, if at all.
o. 3.10 The Subscriber is subscribing for and purchasing the Notes without being furnished any offering literature, other than this Agreement, the Series Note Listing, the Note and such other related documents, agreements or instruments as may be attached to the foregoing documents as exhibits or supplements thereto, or as the Subscriber has otherwise requested from the Company in writing, and without receiving any representations or warranties from the Company or its agents and representatives other than the representations and warranties contained in said documents, and is making this investment decision solely in reliance upon the information contained in said documents and upon any investigation made by the Subscriber or Subscriber: (i) if a natural person’s advisors.
3.11 The Subscriber understands that the Company will review this Agreement, and the Company reserves the unrestricted right to reject or limit any subscription and to close the offer at any time.
3.12 The Subscriber hereby represents that the address of Subscriber has full power and authority to execute and deliver furnished at the end of this Subscription Agreement and all other related agreements is the undersigned's principal residence if he or certificates and to carry out the provisions hereof and thereof; (ii) she is an individual or its principal business address if it is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization corporation or other entity, .
3.13 The Subscriber represents and warrants that such entity was not formed for the specific purpose execution and delivery of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organizationthis Agreement, the consummation of the transactions contemplated hereby and the performance of the obligations hereunder will not conflict with or result in any violation of or default under any provision of any other agreement or instrument to which the Subscriber is a party or any license, permit, franchise, judgment, order, writ or decree, or any statute, rule or regulation, applicable to the Subscriber. The Subscriber confirms that the consummation of the transactions envisioned herein, including, but not limited to, the Subscriber’s Purchase, will not violate any foreign law and that such transactions are lawful in the Subscriber’s country of citizenship and residence.
3.14 The Subscriber acknowledges that if the Subscriber is a Registered Representative of a Financial Industry Regulatory Authority (“FINRA”) member firm, he or she must give such firm the notice required by the FINRA Conduct Rules, or any applicable successor rules of FINRA, receipt of which must be acknowledged by such firm on the signature page hereof. The Subscriber shall also notify the Company if the Subscriber or any affiliate of Subscriber is a registered broker-dealer with the SEC, in which case the Subscriber represents that the Subscriber is purchasing the Notes in the ordinary course of business and, at the time of purchase of the Notes, has no agreements or understandings, directly or indirectly, with any person to distribute the Notes.
3.15 The Subscriber hereby represents that no representations or warranties have been made to the Subscriber by the Company or its agents, employees or affiliates and in entering into this transaction, the Subscriber is not relying on any information other than the results of independent investigation by the Subscriber.
3.16 The Subscriber agrees that the Subscriber is purchasing the Notes with the intent to make such purchase for investment purposes and not with a view toward resale provided, however, that by making the representations herein the Subscriber does not agree to hold the Notes for any minimum or other specific term and reserves the right to dispose of the Notes in accordance with federal and state securities laws applicable to such transactions.
3.17 If the undersigned Subscriber is a partnership, corporation, trust or other entity, such partnership, corporation, trust or other entity further represents and warrants that: (i) it was not formed for the purpose of investing in the Company; (ii) it is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and otherwise duly qualified to purchase and hold the Tokens, the execution Notes; and delivery of (iii) that this Subscription Agreement has been duly authorized by all necessary actionand validly authorized, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a constitutes the legal, valid binding and binding enforceable obligation of the undersigned.
3.18 If the Subscriber is not a United States person, such entity; orSubscriber hereby represents that the Subscriber has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Notes or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Notes, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Notes. Such Subscriber's subscription and payment for, and his, her or its continued beneficial ownership of the Notes will not violate any applicable securities or other laws of the Subscriber's jurisdiction.
3.19 The Subscriber understands and acknowledges that the availability of the claimed exemption of the Offering depends in part on, and that the Company will rely upon the accuracy and truthfulness of, the foregoing representations, and such Subscriber hereby consents to such reliance.
3.20 The Subscriber confirms that the Subscriber has been advised to consult with the Subscriber’s independent attorney regarding legal matters concerning the Company and to consult with independent tax advisers regarding the tax consequences of investing through the Company. The Subscriber acknowledges that Subscriber understands that any anticipated United States federal or state income tax benefits may not be available and, further, may be adversely affected through adoption of new laws or regulations or amendments to existing laws or regulations. The Subscriber acknowledges and agrees that the Company is providing no warranty or assurance regarding the ultimate availability of any tax benefits to the Subscriber by reason of the Purchase.
3.21 The Company’s intent is to comply with all applicable federal, state and local laws designed to combat money laundering and similar illegal activities, including the provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”). Subscriber hereby represents, covenants, and agrees that, to the best of Subscriber’s knowledge based on reasonable investigation:
(a) None of the Subscriber’s funds tendered for the Purchase Price (whether payable in cash or otherwise) shall be derived from money laundering or similar activities deemed illegal under federal laws and regulations.
(b) To the extent within the Subscriber’s control, none of the Subscriber’s funds tendered for the Purchase Price will cause the Company or any of its personnel to be in violation of federal anti-money laundering laws, including (without limitation) the Bank Secrecy Act (31 U.S.C. 5311 et seq.), the United States Money Laundering Control Act of 1986 or the International Money Laundering Abatement and Anti- Terrorist Financing Act of 2001, and/or any regulations promulgated thereunder.
(c) When requested by the Company, the Subscriber will provide any and all additional information, and the Subscriber understands and agrees that the Company may release confidential information about the Subscriber and, if applicable, any underlying beneficial owner or Related Person1 to U.S. regulators and
Appears in 2 contracts
Samples: Promissory Note, Promissory Note
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees with, warranties will survive the Company as followsClosing) that:
a. The (a) the Subscriber acknowledges and understandsis resident in the jurisdiction set out on page 2 of this Agreement;
(b) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Shares, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens Shares for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (c) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber;
(d) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(e) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber in accordance with its terms;
(f) the Subscriber has received and carefully read this Agreement;
(g) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including those risks disclosed in the Public Record and that the Subscriber could lose the entire Subscription Amount;
(h) the Subscriber has made an independent examination and investigation of an investment in the Shares and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Shares and the Issuer;
(i) the Subscriber is purchasing the Shares as principal for its own account for investment purposes only and not for the account of any other person, and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Shares, and the Subscriber has not subdivided its interest in any of the Shares with any other person;
(j) the Subscriber (i) is able to fend for itself in this Subscription, (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Shares, and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;
(k) the Subscriber is not an underwriter of, or dealer in, any of the Shares, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;
(l) the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(m) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Shares,
(ii) that any person will refund the purchase price of any of the Shares, or
(iii) as to the future price or value of any of the Shares;
(n) the funds representing the Subscription Amount will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) and the Subscriber acknowledges that the Issuer may in the future be required by law to disclose the Issuer’s name and other information relating to this Agreement and the Subscription, on a confidential basis, pursuant to the PATRIOT Act; and
(o) no portion of the Subscription Amount to be provided by the Subscriber: (i) if a natural person, represents has been or will be derived from or related to any activity that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing deemed criminal under the laws of the state United States of its organizationAmerica, the consummation of the transactions contemplated hereby or any other jurisdiction, or (ii) is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered being tendered on behalf of a person or entity who has not been identified to or by the Subscriber, and (iii) the Subscriber shall promptly notify the Issuer if the Subscriber discovers that any of such entity representations ceases to be true and will provide the Issuer with appropriate information in connection therewith.
6.2 In this Agreement, the term “U.S. Person” has the meaning ascribed thereto in Regulation S, and, for the purpose of this Agreement, includes, but is not limited to: (a) any person in the United States; (b) any natural person resident in the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 2 contracts
Samples: Subscription Agreement (Epic Stores Corp.), Subscription Agreement (Epic Stores Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesSubscriber, represents and warrants to, and agrees with, to the Company as follows, and acknowledges that the Company is relying upon such covenants, representations and warranties in connection with the sale of the Units to such Subscriber:
a. 4.1 The Subscriber is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters such that it is capable of evaluating the merits and risks of the investment in the Units. The Subscriber can bear the economic risk of this investment, and was not organized for the purpose of acquiring the Units.
4.2 The Subscriber has had full opportunity to review the Company’s filings with the SEC pursuant to the Securities Exchange Act of 1934, including the Company’s annual reports on Form 10-KSB and quarterly reports on Form 10-QSB, and additional information regarding the business and financial condition of the Company. The Subscriber believes it has received all the information it considers necessary or appropriate for deciding whether to purchase the Units. The Subscriber further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the Offering and the business, properties, prospects and financial condition of the Company. The Subscriber has had full opportunity to discuss this information with the Subscriber’s legal and financial advisers prior to execution of this Agreement.
4.3 The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended Units by the Company has not been reviewed by the SEC and that the Units are being issued by the Company pursuant to be exempt an exemption from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon .
4.4 The Subscribers understands that the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens Units it is purchasing are subject to restrictions on transferability and resale characterized as "restricted securities" under the Securities Act inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may not be transferred or resold except as permitted without registration under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of only in certain limited circumstances. In this Subscription Agreementconnection, the Subscriber represents that it is familiar with SEC Rule 144, as presently in effect, and understands the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received resale limitations imposed thereby and have carefully reviewed by the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested Securities Act.
4.5 The Units will be acquired by the Subscriber for investment for the Subscriber's own account, not as a nominee or its Advisors, if anyagent, and understand not with a view to the information contained thereinresale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same. The Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Units.
4.6 An investment in the Company is highly speculative and only Subscribers who can afford the loss of their entire investment should consider investing in the Company and the Units. The Subscriber is satisfied that it has received adequate information with respect financially able to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that bear the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company.
4.7 The Subscriber recognizes that the purchase of the Units involves a high degree of risk in that the Company is in the early stages of development of its business and may require substantial funds in addition to the proceeds of this private placement.
4.8 The Subscriber is not aware of any advertisement of the Units.
4.9 This Agreement has been duly authorized, validly executed and delivered by the Subscriber.
4.10 The Subscriber has not relied upon satisfied himself or herself as to the full observance of the laws of his or her jurisdiction in connection with any representation invitation to subscribe for the Units or any use of this Agreement, including (i) the legal requirements within his jurisdiction for the purchase of the Units; (ii) any foreign exchange restrictions applicable to such purchase; (iii) any governmental or other information consents that may need to be obtained; (oral or writteniv) the income tax and other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisorstax consequences, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise that may be relevant to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, Units; and (v) any restrictions on transfer applicable to any disposition of the Units imposed by the jurisdiction in which the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if anyis resident.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Regulation S Subscription Agreement (Silverado Gold Mines LTD), Regulation S Subscription Agreement (Silverado Gold Mines LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of Shares and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the Shares for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum Shares have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent of the Subscriber as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Shares.
c. The Subscriber understands that no public market now exists for the Company’s Common Stock, and that there may never be an active public market for the Shares of Common Stock sold in the Offering.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed such information about the Company as they have requested and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, are based on assumptions which may not be correct and are subject to numerous factors beyond the Company’s control.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the other Transaction Documents and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement and the other Transaction Documents, assuming due execution by the parties hereto and thereto, constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their respective terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Shares in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Subscription Agreement;
(ii) The Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Shares; provided, however, that the Subscriber may sell or otherwise dispose of the Shares pursuant to registration of the Shares under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensShares prior to the expiration of a period of one year after the date of transfer of the Shares under this Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Shares prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Shares; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Shares. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Shares, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of investments of the kind contemplated by the Company, the Company’s investment results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that can result in substantial or, at times, even total losses.
i. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Shares and could afford complete loss of timesuch investment.
o. j. The Subscriber: (i) if Subscriber is not subscribing for Shares as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
k. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 2 contracts
Samples: Subscription Agreement (Nevada Gold Holdings, Inc.), Subscription Agreement (Nevada Gold Holdings, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesrepresents, represents warrants and warrants tocovenants to the Issuer, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to Issuer is relying thereon, as at the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale date of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and at the documents annexed hereto or referenced herein (collectivelyClosing Date, the “Offering Documents”) and any other and all other documents requested by that:
a. the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.is:
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is i. purchasing the Tokens based on Subscriber’s Class B Common Shares as principal for his own assessment and knowledge account, not for the benefit of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, distribution;
ii. purchasing the Class B Common Shares pursuant to the “Private Issuer” prospectus and registration exemptions contained in whole or in partSection 2.4 of NI 45- 106 and has completed the Private Issuer Exemption Form attached hereto as Exhibit A; and
iii. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and if the Subscriber has no plans to enter into any such agreement or arrangement.indicated on Exhibit A that it is an “accredited investor” as defined in NI 45-106, it has completed the Investor Certificate attached hereto as Exhibit B.
m. The b. the Subscriber understands that there is no market for the Class B Common Shares, that no market may develop, and agrees that it must bear the substantial economic risks Corporation is not a “reporting issuer” in any province of its investment Canada, as such term is defined under applicable securities legislation;
c. the Subscriber has been independently advised as to restrictions with respect to trading in the Tokens andClass B Common Shares imposed by applicable securities legislation, correspondinglyconfirms that no representation has been made to the Subscriber by or on behalf of the Corporation with respect thereto, acknowledges that the Subscriber is aware of the characteristics of the Class B Common Shares, the business objectives risks relating to an investment therein and of the Company, indefinitely because fact that the Tokens Subscriber may not be sold, hypothecated or otherwise disposed able to resell the Class B Common Shares except in accordance with limited exemptions under applicable securities legislation and regulatory policies until expiry of unless subsequently registered under the Securities Act applicable restricted period and compliance with other requirements of applicable state securities laws or an exemption from such registration is available. It is not anticipated and he agrees that there will be any market for certificate representing the Class B Common Shares may bear a legend indicating that the resale of the Tokens, and such securities is restricted;
d. the Subscriber is aware that the offer made by this subscription is irrevocable and requires acceptance by the Corporation and will not be freely transferable become an agreement between the Subscriber and the Corporation until accepted by the Corporation;
e. the Subscriber is a resident of the Province of Ontario at any time.the address set forth on the face page of this Subscription Agreement;
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that f. the Subscriber has full power not received any financial assistance from the Corporation in respect of the purchase of the Class B Common Shares;
g. the Subscriber will not resell the Class B Common Shares except in accordance with the provisions of applicable securities legislation, regulatory policies, this Subscription Agreement and stock exchanges, if applicable in the future;
h. if a corporation, the Subscriber is a valid and subsisting corporation, it has the necessary corporate capacity and authority to execute and deliver this Subscription Agreement and to observe and perform its covenants and obligations hereunder and it has taken all other related agreements or certificates and to carry out the provisions hereof and necessary corporate action in respect thereof; (ii) , or, if it is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization syndicate or other entity, represents that such entity was not formed for the specific purpose form of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its unincorporated organization, it has the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power necessary legal capacity and authority to execute and deliver this Subscription Agreement and to observe and perform its covenants and obligations hereunder and, in either case, it has obtained all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensnecessary approvals in respect thereof;
i. if an individual, the execution Subscriber is of the full age of majority and delivery of has the legal capacity and competence to execute this Subscription Agreement and take all action pursuant hereto;
j. this Subscription Agreement has been duly authorized and validly authorized, executed and delivered by all necessary actionand constitutes a legal, valid, binding and enforceable obligation of the Subscriber;
k. if the Subscriber is not an individual, it pre-existed the offering of the Class B Common Shares and has a bona fide business purpose other than the investment in the Class B Common Shares and was not created, formed or established solely or primarily to acquire securities, or to permit purchases of securities without a prospectus, in reliance on an exemption from the prospectus requirements of applicable securities legislation;
l. the Subscriber has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of this investment, is making this investment entirely at his own risk, without any advice on the merits and suitability of this investment and the Subscriber is able to bear the economic risk of total loss of his entire investment;
m. if required by applicable securities legislation, policy or order of a securities commission or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Corporation in filing such reports, undertakings and other documents with respect to the issuance of the Class B Common Shares;
n. the entering into of this Subscription Agreement has and the transactions contemplated hereby will not result in a violation of any of the terms and provisions of any law applicable to the Subscriber, or, if the Subscriber is not a natural person, any of its constating documents, or of any agreement to which the Subscriber is a party or by which he is bound; o. the Class B Common Shares have not been duly executed offered to the Subscriber in the United States, and delivered the individuals making the order to purchase the Class B Common Shares and executing and delivering this Subscription Agreement on behalf of the Subscriber were not in the United States when the order was placed and this Subscription Agreement was executed and delivered;
p. no person has made to the Subscriber any written or oral representations:
i. that any person will resell or repurchase the Class B Common Shares;
ii. that any person will refund the purchase price of the Class B Common Shares; or
iii. as to the future price or value of the Class B Common Shares; q. the covenants, representations and warranties of the Subscriber stated or referred to herein shall be true and correct both as of the execution of this Subscription Agreement and as of the Closing Time on the Closing Date as if repeated at such entity time, and will survive the completion of the issuance of the Class B Common Shares and the completion of the transactions contemplated under this Subscription Agreement; r. other than the Offering Memorandum, the Subscriber has not received and has not been provided with other documents that may be construed as an “offering memorandum” under applicable securities laws in Canada and that the decision to sign the Subscription Agreement and purchase the Shares has not been based upon any verbal or written representation as to fact or otherwise made by or on behalf of the Issuer. The Subscriber further acknowledges and agrees that the Subscriber has had an opportunity to ask and have answered questions with respect to the Issuer and the proposed use of proceeds and the subscription hereby made;
s. other than the Offering Memorandum, the Subscriber has relied solely upon its own investigations and enquiries relating to the Corporation and not upon any verbal or written representation as to fact or otherwise made by or on behalf of the Corporation;
t. the Subscriber understands and acknowledges that (i) the Corporation is a “private issuer” within the meaning of NI 45-106, (ii) an investment in the Class B Common Shares is an illiquid investment, and (iii) the Subscriber must bear the economic risk of investment in the Class B Common Shares for an indefinite period of time because the Class B Common Shares have not been offered and sold under a prospectus receipted by any Canadian provincial securities commission or registered under any other security laws; u. if required by applicable securities legislation, regulations, rules, policies or orders or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Corporation in filing, such reports, undertakings and other documents with respect to the issue of the Class B Common Shares as may be required;
v. the Subscriber is aware that he is purchasing the Class B Common Shares pursuant to an exemption from the prospectus requirement under applicable securities legislation and, as a consequence:
i. the Subscriber is restricted from using most of the civil remedies available under securities legislation;
ii. the Subscriber may not receive information that would otherwise be required to be provided to the Subscriber under securities legislation; and
iii. the Corporation is relieved from certain obligations that would otherwise apply under securities legislation;
w. the Subscriber acknowledges that:
i. no securities commission or similar regulatory authority or stock exchange has reviewed or passes on the merits of the Class B Common Shares;
ii. there is no government or other insurance covering the Class B Common Shares;
iii. there are risks associated with the purchase of the Class B Common Shares and in owning the Class B Common Shares; and
iv. the Corporation has advised the Subscriber that the Corporation is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell securities through a person or company registered to sell securities under applicable securities legislation and, as a consequence of acquiring securities pursuant to this exemption, certain protections, rights and remedies provided by applicable securities legislation, including statutory rights of rescission or damages, will not be available to the Subscriber;
v. he has been advised to obtain independent legal, valid income tax and binding obligation investment advice with respect to its subscription for the Class B Common Shares and, has been independently advised as to the meanings of all terms contained herein relevant to the Subscriber for purposes of giving representations, warranties and covenants under this subscription;
vi. there are restrictions on his ability to resell the Class B Common Shares and it is his responsibility to find out what those restrictions are and to comply with them before selling the Class B Common Shares; and
vii. no federal agency, governmental authority, regulatory body, stock exchange or other entity in Canada has either reviewed this Subscription Agreement or any other documents which the Corporation has provided or made available to the Subscriber, or made any finding or determination as to the merits of this investment, and no such entity; oragencies, governmental authorities, regulatory bodies, stock exchanges or other entities have made any recommendation or endorsement with respect to the Class B Common Shares;
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, as of the date hereof and agrees with, as of the Company as followsclosing date that:
a. The (a) If the Subscriber acknowledges and understands: is an entity, (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state jurisdiction of its organizationorganization with full right, corporate or partnership power and authority to enter into and to consummate the consummation transactions contemplated by this Agreement and the Note and otherwise carry out its obligations thereunder; and (ii) the execution, delivery and performance by the Subscriber of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver by this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has Note have been duly authorized by all necessary action, this Subscription corporate or similar action on the part of the Subscriber. The Agreement has been duly executed by the Subscriber, and when delivered by the Subscriber in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Subscriber, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application effecting enforcement of creditors’ rights generally; (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii) insofar as indemnification and contribution provisions may be limited by applicable law;
(b) The Subscriber understands that the Note is a “restricted security” and has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any applicable state securities law. The Subscriber is acquiring the Note as principal for its own account for investment and not with a view to, or for sale in connection with, any distribution of such Note or any part thereof, has no present intention of distributing any of such Note and has no arrangement or understanding with any other persons regarding distribution of such Note. The Subscriber does not have any agreement or understanding, directly or indirectly, with any person to distribute the Note;
(c) At any time the Subscriber was offered the Note, it was and at the date hereof it is, an “accredited investor” as defined in Regulation D of the Securities Act, which definition is set forth on Exhibit A attached hereto. The Subscriber understands that the Note is being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber’s representations contained in this Agreement, including, without limitation, that the Subscriber is an “accredited investor.” The Subscriber is not, and is not required to be, registered as a broker-dealer under Section 15 of the Securities Exchange Act of 1934, as amended;
(d) The Subscriber, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Note, and has so evaluated the merits and risks of such investment. The Subscriber is able to bear the economic risk of an investment in the Note, has no need for liquidity with respect to its investment, and, at the present time, is able to afford a complete loss of such investment;
(e) The Subscriber is not purchasing the Note as a result of any advertisement, article, notice or other communication regarding the Note published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement;
(f) The Subscriber has had the opportunity to request and receive all information deemed necessary by it to evaluate an investment in the Company, including the Company’s business plan. The Subscriber confirms that the Company has made available to the Subscriber the opportunity to ask questions of, and receive answers from the Company concerning the terms and conditions of the Note and the nature of the business of the Company, and to obtain additional information or documents which the Company possesses or can acquire without unreasonable effort or expense. The Subscriber confirms that it has relied solely on the foregoing information and documents provided by the Company and the reports that the Company files with the Securities and Exchange Commission to evaluate an investment in the Company. In formulating the decision to acquire the Note, the Subscriber has relied solely upon its own advisors and its own independent investigation of the Company with respect to this Agreement and the nature and effect of any investment in the Note;
(g) The Subscriber represents that after the date the Subscriber learned of the terms of this transaction and prior to the date hereof, neither it nor any person over which the Subscriber has direct control, have made any net short sales of, or granted any option for the purchase of or entered into any hedging or similar transaction with the same economic effect as a net short sale, in the Company’s common stock;
(h) The Subscriber agrees to maintain in confidence non-public information, including this proposed financing, its terms and the information contained in the Company’s business plan, regarding the Company obtained from the Company or its agents during the course of this transaction and understands that the Company has caused these materials to be delivered to Subscriber in reliance upon such agreement; provided however, that the Subscriber can deliver confidential non-public information to any potential investor in the Subsequent Offering transaction in the event such potential investor executes an appropriate Non-disclosure Agreement in a form acceptable to the Company. The Subscriber also agrees not to trade in the Company’s securities on the basis of such non-public information obtained during the course of this transaction;
(i) If the Subscriber is an individual, Subscriber is at least 18 years of age and a bona fide resident and domiciliary (not a temporary or transient resident) of the state or country indicated on the signature page hereof and Subscriber has no present intention of becoming a resident of any other state or jurisdiction;
(j) If the Subscriber is not an individual, Subscriber is domiciled in the state or country indicated on the signature page hereof, has no present intention of becoming domiciled in any other state or jurisdiction;
(k) Except for commissions payable to ________, no brokerage or finder’s fees or commissions are or will be payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement based upon arrangements made by the Subscriber or any of its affiliates. The Company shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of such entity persons for fees of a type contemplated by this section that may be due in connection with transactions contemplated by this Agreement based upon arrangements made by the Subscriber or any of its affiliates.
(l) The Subscriber understands that the Securities and Exchange Commission nor any state regulatory authority has approved the Note offered hereby or passed upon the adequacy or accuracy of the information furnished to the Subscriber or endorsed the merits of this transaction. Any representation to the contrary is a legalcriminal offense.
(m) All of the written information pertaining to the Subscriber which the Subscriber has furnished to the Company, valid and binding obligation all information pertaining to the Subscriber which is set forth in this Agreement, is correct and complete as of the date hereof and, if there should be any material change in such entityinformation hereafter, the Subscriber shall promptly furnish such revised or corrected information to the Company. The Subscriber otherwise meets any special suitability standards applicable to the Subscriber's state of residence.
(n) The Subscriber agrees that any information furnished by the Company to the Subscriber does not constitute investment, accounting, legal or tax advice and the Subscriber is relying on professional advisers for such advice; orand
(o) The Subscriber understands the meaning and legal consequences of the foregoing representations and warranties. The Subscriber certifies that each of the foregoing representations and warranties is true and correct as of the date hereof and shall survive the execution hereof and the purchase of the Note.
Appears in 2 contracts
Samples: Subscription Agreement (Tube Media Corp.), Subscription Agreement (Tube Media Corp.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to and agrees with, covenants with the Company as follows:
a. The Subscriber acknowledges and understands: Corporation (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the which representations, warranties and agreements covenants will be true and correct as at the time of delivery of Shares with the same force and effect as if they had been made by the Subscriber at such time, and shall survive the Closing) that:
(a) the Subscriber is not a U.S. Person;
(b) the Subscriber is acquiring the Shares as a principal (and not as an agent) for investment purposes only, with no intention or view to reselling or distributing any portion or beneficial interest in the Shares, and the Subscriber will be the beneficial owner of any Shares to be issued to the Subscriber if, as and when this Subscription is accepted by the Corporation in whole or in part;
(c) the Subscriber is resident in the jurisdiction identified in the address of the Subscriber contained in this Subscription Agreement; and (iii) set forth on the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution cover page of this Subscription Agreement, which address is the residence or place of business of the Subscriber and was not created or used solely for the purpose of acquiring the Shares;
(d) if the Subscriber is resident outside of Canada:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and sale of the Shares,
(ii) the Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Corporation to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Shares,
(iv) the purchase of the Shares by the Subscriber does not trigger:
A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Corporation in the International Jurisdiction,
(v) the Subscriber will, if requested by the Corporation, deliver to the Corporation a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Corporation, acting reasonably, and
(vi) if it is a resident of the United Kingdom, it is a person of the kind described in Article 19 or 49(2)(a) to (e) of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 and is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of its business;
(e) the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber’s attorney, accountant, purchaser representative and/or tax advisoror, if any the Subscriber is a partnership, syndicate or other form of unincorporated organization, the Subscriber has all necessary approvals of relevant parties to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
(collectively, “Advisors”), have received and have carefully reviewed f) the Memorandum, entering into of this Subscription Agreement and the documents annexed hereto or referenced herein (collectivelytransactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the “Offering Documents”constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly completed, executed and any other delivered to the Corporation, as applicable, all securities forms, undertakings, questionnaires and all other documents requested by the Subscriber or its Advisors, if any, and understand Corporation in order to enable the information contained therein. The Subscriber is satisfied that it has received adequate information with respect Corporation to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that determine the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability availability of an investment in the Company, Exemption pursuant to section 3.2 hereof;
(h) the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is affairs as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s investment in the Tokens Shares and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear the economic risk of loss of such risksinvestment;
(i) the Subscriber has read the Offering Memorandum and has had the opportunity to ask questions of, and has determined that receive answers from, the Tokens are Corporation, or a suitable investment for person authorized to act on behalf of either the Subscriber.Corporation, concerning the business and affairs of the Corporation and the attributes of the Shares which the Subscriber deems necessary and appropriate;
k. The (j) in investing in the Shares, the Subscriber is not relying solely on the Company representations and warranties contained in the Offering Memorandum;
(k) the Subscriber has sought no advice in relation to the investment in the Shares from the Corporation, the Manager, or any of its directorsaffiliates, officersassociates, employeesagents, agents employees or other representatives with respect and neither the Corporation nor any of its affiliates, associates, agents, employees or representatives has provided any advice to the legal, tax, economic and related considerations of an investment Subscriber in the Tokensrelation to such purchase, and the Subscriber has relied on the advice of, or has consulted with, only been advised to consult with its own Advisors, if any.advisers with respect to an investment in the Shares;
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and (l) the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands duly executed and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver delivered this Subscription Agreement and all other related agreements or certificates it constitutes a valid and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws binding agreement of the state of its organization, Subscriber enforceable against the consummation Subscriber;
(m) none of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and funds being used to purchase and hold the TokensShares are, to the execution and delivery Subscriber’s knowledge, proceeds obtained or derived directly or indirectly as a result of this Subscription Agreement has been duly authorized illegal activities. The funds being used to purchase the Shares which will be advanced, directly or indirectly, by all necessary action, this Subscription Agreement has been duly executed and delivered or on behalf of such entity and is a legal, valid and binding obligation the Subscriber to the Corporation or to the account of such entity; orthe Corporation hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering)
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesSubscriber, represents and warrants toto the Corporation as follows, and agrees withacknowledges that the Corporation and the Agent are relying upon such covenants, representations and warranties in connection with the Company as followssale of the Units to such Subscriber:
a. 4.1 The Subscriber is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters such that it is capable of evaluating the merits and risks of the investment in the Units. The Subscriber can bear the economic risk of this investment, and was not organized for the purpose of acquiring the Units.
4.2 The Subscriber has had full opportunity to review the Corporation’s filings with the SEC pursuant to the Exchange Act, including the Corporation’s annual reports on Form 10-KSB and quarterly reports on Form 10-QSB, and believes it has received all the information it considers necessary or appropriate for deciding whether to purchase the Units. The Subscriber further represents that it has had an opportunity to ask questions and receive answers from the Corporation regarding the terms and conditions of the Offering and the business, properties, prospects and financial condition of the Corporation. The Subscriber has had full opportunity to discuss this information with the Subscriber’s legal and financial advisers prior to execution of this Subscription Agreement.
4.3 The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended Units by the Corporation has not been reviewed by the SEC and that the Units are being issued by the Corporation pursuant to be exempt an exemption from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon .
4.4 The Subscriber understands that the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens Units it is purchasing are subject to restrictions on transferability and resale characterized as "restricted securities" under the Securities Act inasmuch as they are being acquired from the Corporation in a transaction not involving a public offering and that under such laws and applicable regulations such securities may not be transferred or resold except as permitted without registration under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of only in certain limited circumstances. In this Subscription Agreementconnection, the Subscriber represents that it is familiar with SEC Rule 144, as presently in effect and understands the Subscriber’s attorneyresale limitations imposed thereby and by the Securities Act, accountantand that there may be no liquidity for the Offered Securities, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested until registered they will not be transferable.
4.5 The Units will be acquired by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is 's own account, not relying on the Company as a nominee or any of its directorsagent, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to the resale or distribution of any part thereof, in whole and that the Subscriber has no present intention of selling, granting any participation in, or in partotherwise distributing the same. The Subscriber has no does not have any contract, undertaking, agreement or arrangement, formal or informal, arrangement with any person to sell sell, transfer or transfer all grant participations to such person or to any part third person, with respect to any of the Tokens Units.
4.6 An investment in the Corporation is highly speculative and only Subscribers who can afford the loss of their entire investment should consider investing in the Corporation and the Subscriber has no plans to enter into any such agreement or arrangement.
m. Units. The Subscriber understands and agrees that it must is financially able to bear the substantial economic risks of its an investment in the Tokens and, correspondingly, Corporation.
4.7 The Subscriber recognizes that the business objectives purchase of the Company, indefinitely because Units involves a high degree of risk in that the Tokens Corporation is in the early stages of development of its business and may not be sold, hypothecated or otherwise disposed require substantial funds in addition to the proceeds of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It this private placement.
4.8 The Subscriber is not anticipated that there will be aware of any market for resale advertisement of the Tokens, and such securities will not be freely transferable at any timeUnits.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this 4.9 This Subscription Agreement has been duly authorized by all necessary actionauthorized, this Subscription Agreement has been duly validly executed and delivered by the Subscriber.
4.10 The Subscriber has satisfied himself or herself as to the full observance of the laws of his or her jurisdiction in connection with any invitation to subscribe for the Units or any use of this Subscription Agreement, including: (i) the legal requirements within his jurisdiction for the purchase of the Units; (ii) any foreign exchange restrictions applicable to such purchase; (iii) any governmental or other consents that may need to be obtained; (iv) the income tax and other tax consequences, if any, that may be relevant to an investment in the Units; and (v) any restrictions on transfer applicable to any disposition of the Units imposed by the jurisdiction in which the Subscriber is resident.
4.11 Other than the representations, warranties and covenants made by the Corporation to the Subscriber herein, or by the Corporation to the Agent in the Agency Agreement, it has relied solely upon publicly available information relating to the Corporation and not upon any other verbal or written representation as to fact or otherwise made by or on behalf of the Corporation or the Agent, such entity publicly available information having been delivered to the Subscriber without independent investigation or verification by the Agent, and is a legalagrees that the Agent and the Agent's counsel assume no responsibility or liability of any nature whatsoever for the accuracy, valid adequacy or completeness of the publicly available information, and binding obligation of acknowledges that Corporation's counsel, O’Xxxxx Law Group PLLC, and the Agent's counsel, Stikeman, Gxxxxx, Xxxxxx & Spiegel LLP, are acting as counsel to the Corporation and the Agent, respectively, and not as counsel to the Subscriber and the Subscriber may not rely upon such entity; orcounsel in any respect.
Appears in 2 contracts
Samples: Subscription Agreement (Searchlight Minerals Corp.), Subscription Agreement (Searchlight Minerals Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to the Company the following:
(a) The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of Shares and agrees the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
(b) The Subscriber is acquiring the Shares for investment for its own account and not with the view to, or for resale in connection with, the Company as follows:
a. any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum Shares, have not been and will not be registered under the Securities Act or any state securities laws; , by reason of a specific exemption from the registration provisions of the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Shares. The Subscriber understands and acknowledges that the offering of the Shares pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
(c) The Subscriber understands that there is a limited public market for the Company’s Common Stock and no market for its Preferred Stock and that there may never be an active public market for the Common Stock or the Shares sold in the Offering.
(d) The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that such Subscriber is purchasing the Shares notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including subsequent period financial statements that will be filed with the SEC, that such Subscriber is not relying on any such information in connection with such Subscriber’s purchase of the Shares and that such Subscriber waives any right of action with respect to the nondisclosure to him prior to his purchase of the Shares of any such information.
(e) As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Subscriber hereunder shall have been taken, and this Agreement, assuming due execution by the parties hereto, constitute a valid and legally binding obligation of the Subscriber, enforceable in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) that bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
(f) The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the offering Securities and sale of Exchange Commission under the Tokens Securities Act or (ii) is intended to be exempt from registration not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, by virtue of Section 4(a)(2) thereof, basedand, in parteach case, upon shall submit to the representationsCompany such further assurances of such status as may be reasonably requested by the Company.
(g) The Subscriber, warranties if a non-U.S. Person, agrees that it is acquiring the Shares in an offshore transaction pursuant to Regulation S and agreements of hereby represents to the Company as follows:
(i) Subscriber contained in is outside the United States when receiving and executing this Subscription Agreement;
(ii) Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Shares; and (iii) provided, however, that the Tokens are subject Subscriber may sell or otherwise dispose of the Shares pursuant to restrictions on transferability and resale registration of the Shares under the Securities Act and may not any applicable state and provincial securities laws or under an exemption from such registration requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that offers and sales of any of the Shares prior to the expiration of a period of one year after the date of transfer of the Shares under this Subscription Agreement (the “Distribution Compliance Period”) shall only be transferred or resold except as permitted under made in compliance with the U.S. safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or as allowed by exemptions within an exemption therefrom, and that all offers and sales after the jurisdiction Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber or receiver understands and agrees not to engage in any hedging transactions involving the Shares prior to the end of the Tokens.Distribution Compliance Period unless such transactions are in compliance with the Securities Act; and
b. Prior (v) The Subscriber hereby represents that it has satisfied itself as to the execution full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including: (a) the Subscriber legal requirements within its jurisdiction for the purchase of the Shares; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the Subscriber’s attorney, accountant, purchaser representative and/or income tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisorstax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Shares. Such Subscriber’s subscription and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understandspayment for, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any its continued beneficial ownership of the Company’s investments provided to the Subscriber by the Company or Shares, will not violate any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state applicable securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to laws of the Subscriber’s Advisors, if anyjurisdiction.
h. In evaluating (h) The Subscriber or its duly authorized representative realizes that because of the suitability inherently speculative nature of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated investment is subject to a high degree of financial and market risk that can result in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisorssubstantial or, if anyat times, by the Company in writingeven total losses.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. (i) The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity of the investment in the Shares and could afford complete loss of such investment.
(j) The Subscriber is not subscribing for Shares as a result of or subsequent to any advertisement, article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
(k) Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Tokens Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for an indefinite period any form of timedamages as a result of any of the foregoing actions.
o. The Subscriber: (il) if a natural person, represents All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of this Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the Subscriber will immediately furnish revised or corrected information to the Company.
(m) The Subscriber represents and warrants to the Company that neither the Subscriber nor any of its organization, the consummation affiliates has directly or indirectly traded any securities of the transactions contemplated hereby is authorized byCompany, and will including without limitation, making any short sales or engaging in any hedging transaction with respect to such securities (collectively, “Prohibited Transactions”), since becoming aware of the Offering. Furthermore, Subscriber shall not result engage in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out any Prohibited Transactions through the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orfinal Closing Date.
Appears in 2 contracts
Samples: Subscription Agreement (California Gold Corp.), Preferred Stock Subscription Agreement (California Gold Corp.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to the Issuer (which representations and warranties will survive the Closing) that:
(a) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(b) the Subscriber is not in the United States, is not a U.S. Person, is not purchasing the Securities for the account or benefit of a U.S. Person, did not receive the offer to buy the Securities while in the United States and it (or its authorized signatory) was outside of the United States at the time its buy order was placed and this Agreement was executed;
(c) offers and sales of any of the Securities prior to the expiration of the period specified in Regulation S (such period hereinafter referred to as the “Distribution Compliance Period”) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or pursuant to an exemption therefrom, and all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the 1933 Act or an exemption therefrom, and in each case only in accordance with applicable state, provincial and foreign securities laws;
(d) it has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the sale of the Securities;
(e) hedging transactions involving the Securities may not be conducted unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable securities laws;
(f) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and agrees withsale of the Securities;
(g) the Subscriber is purchasing the Securities pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Company as followsSubscriber is permitted to purchase the Securities under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions;
(h) the applicable securities laws of the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Securities;
(i) the purchase of the Securities by the Subscriber does not trigger:
a. The (i) any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
(ii) any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction;
(j) the Subscriber acknowledges and understandswill, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subsection (i) to the satisfaction of the Issuer, acting reasonably;
(k) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Securities, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (l) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber;
(m) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(n) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber in accordance with its terms;
(o) the Subscriber has received and carefully read this Agreement;
(p) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including that the Subscriber could lose its entire investment;
(q) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber’s decision to invest in the Securities and the Issuer;
(r) the Subscriber is purchasing the Securities as principal for its own account for investment purposes only and not for the account of any other person, and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Securities, and the Subscriber has not subdivided its interest in any of the Securities with any other person;
(s) the Subscriber (i) is able to fend for itself in this Subscription, (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Securities, and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;
(t) the Subscriber is not an underwriter of, or dealer in, any of the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
(u) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(v) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Securities,
(ii) that any person will refund the purchase price of any of the Securities, or
(iii) as to the future price or value of any of the Securities;
(w) the funds representing the Subscription Amount will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) and the Subscriber acknowledges that the Issuer may in the future be required by law to disclose the Issuer’s name and other information relating to this Agreement and the Subscription, on a confidential basis, pursuant to the PATRIOT Act; and
(x) no portion of the Subscription Amount to be provided by the Subscriber: (i) if a natural person, represents has been or will be derived from or related to any activity that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing deemed criminal under the laws of the state United States of its organizationAmerica, the consummation of the transactions contemplated hereby or any other jurisdiction, or (ii) is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered being tendered on behalf of a person or entity who has not been identified to or by the Subscriber, and (iii) the Subscriber shall promptly notify the Issuer if the Subscriber discovers that any of such entity representations ceases to be true and will provide the Issuer with appropriate information in connection therewith.
6.2 In this Agreement, the term “U.S. Person” has the meaning ascribed thereto in Regulation S, and, for the purpose of this Agreement, includes, but is not limited to: (a) any person in the United States; (b) any natural person resident in the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 2 contracts
Samples: Private Placement Subscription Agreement (Epic Stores Corp.), Private Placement Subscription Agreement (Epic Stores Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthat:
a. The 2.1 No Government Recommendation or Approval. Subscriber acknowledges and understands: (iunderstands that no federal or state agency has passed upon or made any recommendation or endorsement of the Company or the Sale of the Securities.
2.2 Accredited Investor. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) that the Tokens offered pursuant to the Memorandum have not been and will not be registered of Regulation D under the Securities Act or any state securities laws; of 1933, as amended (ii) the “Securities Act”), and acknowledges that the offering and sale of the Tokens contemplated hereby is intended being made in reliance, among other things, on a private placement exemption to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale “accredited investors” under the Securities Act and may not be transferred or resold except as permitted similar exemptions under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokensstate law.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein2.3 Intent. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the CompanySecurities solely for investment purposes, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account (and/or for investment the account or benefit of its members or affiliates, as permitted, pursuant to the terms hereof), and not with a view to resale the distribution thereof and Subscriber has no present arrangement to sell the Securities to or distribution thereof, in whole through any person or in partentity except as may be permitted hereunder. The Subscriber has no agreement or arrangement, formal or informal, shall not engage in hedging transactions with any person regard to sell or transfer all or any part the Securities unless in compliance with the Securities Act.
2.4 Restrictions on Transfer. Subscriber acknowledges and understands the Private Units are being offered in a transaction not involving a public offering in the United States within the meaning of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. Securities Act. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may Securities have not be sold, hypothecated or otherwise disposed of unless subsequently been registered under the Securities Act and applicable state securities laws and, if in the future Subscriber decides to offer, resell, pledge or otherwise transfer the Securities, such Securities may be offered, resold, pledged or otherwise transferred only pursuant to (i) an effective registration statement filed under the Securities Act, (ii) an exemption from registration under Rule 144 promulgated under the Securities Act, if available, or (iii) any other available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable securities laws of any state or any other jurisdiction. Notwithstanding the foregoing, Subscriber acknowledges and understands the Securities are subject to transfer restrictions as set forth in the that certain letter agreement, dated as of the date hereof (the “Insider Letter Agreement”), among the Company, its officers, directors, director nominees and the Sponsor. Subscriber agrees that if any transfer of its Securities or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company with respect to such transfer. Absent registration or another available exemption from registration, Subscriber agrees it will not resell the Securities (unless otherwise permitted pursuant to the terms hereof). Subscriber further acknowledges that because the Company is available. It is a shell company, Rule 144 may not anticipated that there will be any market available to Subscriber for the resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in Securities until the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the one year anniversary following consummation of the transactions contemplated hereby is authorized byBusiness Combination of the Company, despite technical compliance with the requirements of Rule 144 and will not result in a violation the release or waiver of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orany contractual transfer restrictions.
Appears in 2 contracts
Samples: Private Unit Subscription Agreement (Gaming & Hospitality Acquisition Corp.), Private Unit Subscription Agreement (Gaming & Hospitality Acquisition Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and covenants and agrees with, the Company as follows:
a. (a) The Subscriber acknowledges and understands: (i) understands that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Shares is intended being made only by means of this Agreement. In deciding to subscribe for Shares, the Subscriber has not considered any information other than that contained in this Agreement. In particular, the Subscriber understands that the Company has not authorized the use of, and the Subscriber confirms that he or she is not relying upon, any other information, written or oral, other than material contained in this Agreement. The Subscriber is aware that the purchase of the Shares involves a high degree of risk and that the Subscriber may sustain, and has the financial ability to sustain, the loss of his or her entire investment. The Subscriber understand that the proceeds from the sale of the Shares will be exempt from registration used in connection with the purchase by the Company of all of the issued and outstanding capital stock of Ranor, Inc. The Subscriber understands that no assurance can be given that the Company will be profitable in the future. There is no market for the Shares and there is no assurance that the Common Stock will be listed on the OTC Bulleting Board, the Nasdaq Stock Market or any stock exchange, and that the Company may need additional financing and the failure of the Company to raise additional funds when required, may have a material adverse effect upon its business. Furthermore, in subscribing for the Shares, the Subscriber acknowledges that the Company has not made, and the Subscriber is not relying in any manner upon, any projections or forecasts of future operations. The Subscriber has had the opportunity to ask questions of, and receive answers from, the Company's management regarding the Company.
(b) The Subscriber represents to the Company that it (i) is an accredited investor within the meaning of Rule 501 of the Commission under the Securities Act, by virtue of Section 4(a)(2(ii) thereofunderstands that in order to be treated as an accredited investor, based, in part, upon the representations, warranties and agreements Subscriber must meet one of the Subscriber contained in tests for an accredited investor set forth on Exhibit A to this Subscription Agreement; , and (iii) has read Exhibit A and is an accredited investor as set forth on the Tokens are subject signature page of this Agreement. The Subscriber further represents that he or she has such knowledge and experience in financial and business matters as to restrictions on transferability enable him or her to understand the nature and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction extent of the Subscriber or receiver of risks involved in purchasing the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained thereinShares. The Subscriber is satisfied fully aware that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this such investments can and sometimes do result in the loss of the entire investment. The Subscriber recognizes can afford to sustain the loss of his or her entire investment, and the Subscriber's purchase of the Shares is being made from funds which the Subscriber has allocated to high risk, illiquid investments and such funds are not required by the Subscriber to meet his or her normal expenses. The Subscriber has engaged his or her own counsel and accountants to the extent that he or she deems it necessary.
(c) All of the Company has a limited financial information provided by the Subscriber in his Confidential Investor Questionnaire (the "Questionnaire"), is true and operating history and that the Company’s proposed investments correct in Digital Asset Securities involve a high degree of riskall material respects. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes is relying on such statements and the Subscriber's representations contained in this Agreement in executing this Agreement and issuing the Shares, and the Subscriber agrees to be reliable, however indemnify and hold harmless the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employeescontrolling persons and counsel from and against all manner of loss, agentsliability, representatives, affiliates damage or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment expense (including fees and knowledge expenses of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor counsel) which they or any state securities commission has approved of them may incur as a result of any material misstatement of fact or disapproved omission of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, material fact set forth in the Subscriber’s judgment, sufficient information from 's Questionnaire or as a result of any misrepresentation by the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect theretoSubscriber in this Agreement. The Subscriber has evaluated further agrees to notify the risks Company immediately upon the occurrence of investing any event which makes the information contained in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber's Questionnaire inaccurate or misleading in any material respect.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. (d) The Subscriber is acquiring the Tokens solely for Subscriber’s own account Shares pursuant to this Agreement for investment and not with a view to resale the sale or distribution thereof, for its own account and not on behalf of others; has not granted any other person any interest or participation in whole or in partright or option to purchase all or any portion of the Shares; is aware that the Securities are restricted securities within the meaning of Rule 144 of the Commission under the Securities Act, and may not be sold or otherwise transferred other than pursuant to an effective registration statement or an exemption from registration; and understands and agrees that the certificates for the Shares bear the Company's standard investment legend. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part understands the meaning of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangementthese restrictions.
m. (e) The Subscriber will not transfer the Shares except in compliance with all applicable Federal and state securities laws and regulations. The Subscriber understands and agrees that the Company is not obligated to recognize any transfer of the Shares unless it must bear the substantial economic risks of its investment in the Tokens is satisfied that there has been compliance with such securities laws and regulations, and, correspondinglyin such connection, the business objectives Company may request an opinion of counsel reasonably acceptable to the Company as to the availability of any exemption.
(f) The Subscriber has been informed by the Company that the issuance of the CompanyShares pursuant to this Agreement will be exempt under Section 4(2) or 4(6) of the Securities Act and/or Regulation D, indefinitely because and in particular, Rule 506, of the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered Commission under the Securities Act and applicable exemption under state securities laws or an laws, and the Subscriber understands that such exemption from such registration is available. It is not anticipated that there will be any market for resale dependent upon the accuracy of the Tokens, information contained in the Subscriber's Questionnaire and such securities will not be freely transferable at any timethe Subscriber's representations set forth in this Agreement.
n. (g) The Subscriber has adequate means represents and warrants that no broker or finder was involved directly or indirectly in connection with the Subscriber's purchase of providing for such the Shares pursuant to this Agreement. The Subscriber shall indemnify the Company and hold it harmless from and against any manner of loss, liability, damage or expense, including fees and expenses of counsel, resulting from a breach of the Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment 's warranty contained in the Tokens for an indefinite period of timethis Section 3(g).
o. The Subscriber: (ih) if a natural person, represents To the extent that the Subscriber has full power deemed it necessary, the Subscriber has consulted his or her own legal, accounting, tax, investment and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out advisors.
(i) If the provisions hereof and thereof; (ii) if Subscriber is a corporation, partnershipall corporate action necessary for the execution, delivery and performance by the Subscriber has been taken and the person executing this Agreement on behalf of the Subscriber is an authorized officer of the Subscriber. If the Subscriber is a limited partnership or limited liability company or partnership, or association, joint stock company, the person executing this Agreement is a general partner or managing member of the Subscriber. If the Subscriber is a trust, unincorporated organization estate or other entityfiduciary, represents the person executing this Agreement is the trustee, executor, administrator or other fiduciary.
(j) The Subscriber understands that such entity was it has registration rights set forth in Exhibit B to this Agreement.
(k) The Subscriber has not formed for received and is not aware of any solicitation or advertising in connection with the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws offering of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orShares.
Appears in 2 contracts
Samples: Subscription Agreement (Lounsberry Holdings Ii Inc), Subscription Agreement (Techprecision Corp)
Representations and Warranties of the Subscriber. The sale of the Purchased Securities by the Corporation to the Subscriber is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the sale of the Purchased Securities or upon the issue of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or registration statement or delivering an offering memorandum or similar document. The Subscriber hereby acknowledgesand, represents if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, acknowledge, represent, warrant, covenant and warrants tocertify to and with the Corporation that, as at the date given above and at the Closing Date:
(a) the Corporation has advised you that the Corporation is relying on an exemption from the requirements under the Securities Laws in Canada to provide you with a prospectus or registration statement and to sell the Purchased Securities through a person registered to sell securities under the Securities Laws in Canada and no prospectus or registration statement has been filed by the Corporation with any of the Commissions in connection with the issuance of the Purchased Securities, and agrees with, the Company as followsa consequence:
a. The Subscriber acknowledges and understands: (i) you are restricted from using most of the civil remedies available under Securities Laws in Canada and certain protections, rights and remedies provided by Securities Laws in Canada, including statutory rights of rescission or damages, will not be available to you;
(ii) you may not receive information that would otherwise be required to be provided to you under the Securities Laws in Canada; and
(iii) the Corporation is relieved from certain obligations that would otherwise apply under the Securities Laws in Canada;
(b) if you are the Subscriber, you are resident in the jurisdiction set out under “Subscriber’s Residential or Head Office Address” on page i of this Agreement or if you are the Disclosed Purchaser, you are resident in the jurisdiction set out under “Disclosed Purchaser’s Residential or Head Office Address” on page ii of this Agreement, as applicable, which address is your residence or principal place of business, and such address was not obtained or used solely for the purpose of acquiring the Purchased Securities, and if you were solicited to purchase the Purchased Securities, such solicitation occurred in such jurisdiction and the purchase by and sale to you of the Purchased Securities and any act, solicitation, conduct or negotiation directly or indirectly in furtherance of such purchase and sale has occurred only in such jurisdiction;
(c) you are:
(i) purchasing the Purchased Securities as principal for your own account or, in the case of section 4(d)(i) below, are deemed under the applicable Securities Laws in Canada to be purchasing as principal, and not for the benefit of any other person; or
(ii) purchasing the Purchased Securities as agent for the Disclosed Purchaser and the Disclosed Purchaser for whom you are acting is purchasing the Purchased Securities as principal for its own account and not for the benefit of any other person; or
(d) you:
(i) are an Accredited Investor, by virtue of the fact that you fall within one or more of the sub-paragraphs of the definition of Accredited Investor set out in the Accredited Investor Certificate attached as Appendix A to Schedule A, you confirm the truth and accuracy of all statements in such schedule as of the date of this Agreement and the Closing Date, and you were not created or used solely to purchase securities as an Accredited Investor as described in paragraph (m) of the definition of Accredited Investor set out in Appendix A to Schedule A and if the Subscriber is an individual described in category (j), (k) or (l) of the Accredited Investor Certificate (and does not meet the higher financial asset threshold set out in paragraph (j.1) of the Accredited Investor Certificate), it is delivering with this Agreement a completed and signed Form 45-106F9 - Form for Individual Accredited Investors (attached as Exhibit 1 to Appendix A); or
(ii) are not an individual, are purchasing sufficient Offered Securities so that the Tokens aggregate acquisition cost of the Purchased Securities is not less than CDN$150,000 and were not created solely to purchase or hold securities in reliance on section 2.10 of National Instrument 45-106;
(e) if you are not an individual, you pre-existed the offering of the Offered Securities and you have a bona fide business purpose other than the investment in the Offered Securities and you were not created, formed or established solely or primarily to acquire Offered Securities, or permit purchases of securities without a prospectus, in reliance on an exemption from the prospectus requirements of applicable Securities Laws;
(f) unless you have completed and delivered the U.S. Accredited Investor Certificate attached as Schedule B hereto (in which case you make the representations, warranties and covenants therein):
(i) you are not a U.S. Person;
(ii) the Offered Securities were not offered pursuant to you in the Memorandum United States and at the time your buy order was made, you were outside the United States;
(iii) this Agreement was delivered to, executed and delivered by, you (or your authorized signatory) outside the United States;
(iv) you are not, and will not be purchasing the Purchased Securities for the account or benefit of, a U.S. Person or Person in the United States;
(v) you are not a distributor (as defined in Regulation S under the 1933 Act), a dealer (as defined in Section 2(a)(12) of the 1933 Act), or a person receiving a selling concession in respect of the Purchased Securities;
(vi) the current structure of this transaction and all transactions and activities contemplated hereunder is not a scheme to avoid the registration requirements of the 1933 Act;
(vii) you have no intention to distribute either directly or indirectly any of the Purchased Securities in the United States, except in compliance with the 1933 Act and applicable state securities laws;
(viii) you have not purchased the Purchased Securities as a result of any form of “directed selling efforts” (as such term is used in Regulation S) or “general solicitation or general advertising” (as such terms are used under Rule 502(c) of Regulation D), and the sale of the Purchased Securities was not accompanied by any advertisement in printed media of general and regular paid circulation including printed public media, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, television or telecommunications, including electronic display and the Internet or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(ix) you understand that the Offered Securities have not been and will not be registered under the Securities 1933 Act or the securities laws of any state of the United States, the Offered Securities may not be offered or sold, directly or indirectly, in the United States or to U.S. Persons except pursuant to registration under the 1933 Act and the securities lawslaws of all applicable states or available exemptions therefrom, and the Corporation has no obligation or present intention of filing a registration statement under the 1933 Act or the securities laws of any state of the United States in respect of any of the Offered Securities;
(g) if you are resident in the United Kingdom you are:
(i) an investment professional falling within Article 19 of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 (“FPO”) namely authorised firms under FSMA; persons who are exempt in relation to promotions of shares in companies; person whose ordinary activities involve them investing in companies; governments; local authorities or international organisations; or a director, officer or employee acting for such entities in relation to investment; and/or
(ii) that an existing shareholder in the offering and sale Corporation within Article 43 of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementFPO; and and/or
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions a high value entity falling within the jurisdiction Article 49 of the Subscriber FPO, namely a body corporate with share capital or receiver net assets of not less than £5 million (except where the Tokens.
b. Prior body corporate has more than 20 members in which case the share capital or net assets should be not less than £500,000); an unincorporated association or partnership with net assets of not less than £5 million; a trustee of a high value trust; or a director, officer or employee acting for such entities in relation to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any investment; and/or
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the iv) otherwise lawfully entitled to receive documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering notwithstanding that none of the documents produced in connection with the Offering shall have been approved for the purposes of section 21 of FSMA.
(h) you have not offered or sold and will not offer or sell any Offered Securities to evaluate persons in the United Kingdom in circumstances which would result in the Offered Securities being offered to the public in the United Kingdom within the meaning of section 85(1) of FSMA.
(i) if you are resident outside of Canada and the United States, you:
(i) are knowledgeable of, or have been independently advised as to the applicable securities laws of the securities regulatory authorities (the “Authorities”) having application in the jurisdiction in which you are resident (the “International Jurisdiction”) which would apply to the acquisition of the Purchased Securities, if any;
(ii) are purchasing the Purchased Securities pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, you are permitted to purchase the Purchased Securities under the applicable securities laws of the Authorities in the International Jurisdiction without the need to rely on any exemption;
(iii) confirm that the subscription by the Subscriber complies with the securities laws requirements in the International Jurisdiction, does not contravene any applicable securities laws of the Authorities in the International Jurisdiction and does not require the Corporation to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Purchased Securities; and
(iv) confirm that the purchase of the Purchased Securities by you does not trigger:
(A) an obligation of the Corporation to prepare and file a registration statement, prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction or to register the Purchased Securities or to be registered with or to file any report or notice with or to seek any approvals of any nature whatsoever from any governmental or regulatory authority in the International Jurisdiction; or
(B) continuous disclosure reporting obligations of the Corporation in the International Jurisdiction; and you will, if requested by the Corporation, comply with such other requirements as the Corporation may reasonably require;
(j) you acknowledge that no agency, stock exchange or governmental agency, securities commission or similar regulatory authority or other entity has reviewed or passed on or made any finding or determination as to the merits and risks of or made any recommendation or endorsement with respect to the Common Shares;
(k) if you are not a resident of the Subscriber’s investment in Province of British Columbia, you certify to the Tokens Corporation that you are not a resident of British Columbia and acknowledge that:
(i) no securities commission or similar regulatory authority has obtained, in reviewed or passed on or passed on the Subscriber’s judgment, sufficient information merits of the Common Shares;
(ii) there is no government or other insurance covering the Common Shares;
(iii) there are risks associated with the purchase of the Purchased Securities and you are aware of the risks and other characteristics of the Purchased Securities;
(iv) there are restrictions on your ability to resell the Purchased Securities and it is your responsibility to find out what those restrictions are and to comply with them before selling the Purchased Securities; and
(v) the Corporation has advised you that it is relying on an exemption from the Company requirements to provide the purchaser with a prospectus and to sell securities through a person registered to sell securities under the Securities Act (British Columbia) and, as a consequence of acquiring securities pursuant to this exemption, certain protections, rights and remedies provided by the Securities Act (British Columbia), including statutory rights of rescission or Subscriber’s Advisorsdamages, will not be available to you.
(l) you acknowledge and consent to the fact that the Corporation is collecting personal information (as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws in effect from time to time) of the Subscriber and Disclosed Purchaser, if any, for the purpose of completing this Agreement; you acknowledge and consent to evaluate the merits Corporation retaining such personal information for as long as permitted or required by law or business practices; you agree and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined acknowledge that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic Corporation may use and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any disclose such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriberpersonal information: (i) if a natural person, represents that for internal use with respect to managing the relationships between and contractual obligations of the Corporation and the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofDisclosed Purchaser, if any; (ii) if a corporationfor use and disclosure for income tax-related purposes, partnershipincluding, without limitation, where required by law, disclosure to the Canada Revenue Agency; (iii) disclosure to professional advisers of the Corporation; (iv) disclosure to securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trade or similar regulatory filings, including the Form 45-106F1 – Report of Exempt Distribution (the “XXXX”) and Schedules 1 and 2 thereto, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization similar regulatory filings; (v) disclosure to a governmental or other entity, represents that authority to which the disclosure is required by court order or subpoena compelling such entity was not formed disclosure and where there is no reasonable alternative to such disclosure; (vi) disclosure to any Person where such disclosure is necessary for legitimate business reasons and is made with your prior written consent; (vii) disclosure to a court determining the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws rights of the state parties under this Agreement; and (viii) for use and disclosure as otherwise required or permitted by law; in addition, you further acknowledge and consent to the fact that the Corporation may be required to provide any one or more of its organizationthe Canadian securities regulators, stock exchanges, the consummation Investment Industry Regulatory Organization of Canada, other regulatory agencies or the Corporation’s registrar and transfer agent with any personal information provided by the Subscriber and Disclosed Purchaser, if any, in this Agreement, and may make any other filings of such personal information as the Corporation’s counsel deems appropriate, and you acknowledge receipt of notification of the transactions contemplated disclosure of Personal Information by the Corporation to the Stock Exchanges and the Subscriber and Disclosed Purchaser, if any, hereby is authorized by, consent to and will not result in a violation of state law or its charter or other organizational documents, such entity has full power authorize the foregoing use and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf disclosure of such entity Personal Information and is a legalagree to provide, valid on request, all particulars required by the Corporation in order to comply with the foregoing;
(m) you further acknowledge and binding obligation expressly consent to:
(i) the disclosure of Personal Information by the Corporation to the Stock Exchanges and other applicable regulatory authorities, as required; and
(ii) the collection, use and disclosure of Personal Information by the Stock Exchanges for such entity; orpurposes described as may be identified by the Stock Exchanges, from time to time;
Appears in 2 contracts
Samples: Subscription Agreement (Deepkloof LTD), Subscription Agreement (Deepkloof LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to the Company the following:
(a) The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of Shares and agrees the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
(b) The Subscriber is acquiring the Shares for investment for its own account and not with the view to, or for resale in connection with, the Company as follows:
a. any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum Shares, have not been and will not be registered under the Securities Act or any state securities laws; , by reason of a specific exemption from the registration provisions of the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Shares. The Subscriber understands and acknowledges that the offering of the Shares pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
(c) The Subscriber understands that there is a limited public market for the Company’s Common Stock and that there may never be an active public market for the Shares sold in the Offering.
(d) The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that such Subscriber is purchasing the Shares notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including subsequent period financial statements that will be filed with the SEC, that such Subscriber is not relying on any such information in connection with such Subscriber’s purchase of the Shares and that such Subscriber waives any right of action with respect to the nondisclosure to him prior to his purchase of the Shares of any such information.
(e) As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Subscriber hereunder shall have been taken, and this Agreement, assuming due execution by the parties hereto, constitute a valid and legally binding obligation of the Subscriber, enforceable in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) that bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
(f) The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the offering Securities and sale of Exchange Commission under the Tokens Securities Act or (ii) is intended to be exempt from registration not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, by virtue of Section 4(a)(2) thereof, basedand, in parteach case, upon shall submit to the representationsCompany such further assurances of such status as may be reasonably requested by the Company.
(g) The Subscriber, warranties if a non-U.S. Person, agrees that it is acquiring the Shares in an offshore transaction pursuant to Regulation S and agreements of hereby represents to the Company as follows:
(i) Subscriber contained in is outside the United States when receiving and executing this Subscription Agreement;
(ii) Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Shares; and (iii) provided, however, that the Tokens are subject Subscriber may sell or otherwise dispose of the Shares pursuant to restrictions on transferability and resale registration of the Shares under the Securities Act and may not any applicable state and provincial securities laws or under an exemption from such registration requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that offers and sales of any of the Shares prior to the expiration of a period of one year after the date of transfer of the Shares under this Subscription Agreement (the “Distribution Compliance Period”) shall only be transferred or resold except as permitted under made in compliance with the U.S. safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or as allowed by exemptions within an exemption therefrom, and that all offers and sales after the jurisdiction Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber or receiver understands and agrees not to engage in any hedging transactions involving the Shares prior to the end of the Tokens.Distribution Compliance Period unless such transactions are in compliance with the Securities Act; and
b. Prior (v) The Subscriber hereby represents that it has satisfied itself as to the execution full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including: (a) the Subscriber legal requirements within its jurisdiction for the purchase of the Shares; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the Subscriber’s attorney, accountant, purchaser representative and/or income tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisorstax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Shares. Such Subscriber’s subscription and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understandspayment for, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any its continued beneficial ownership of the Company’s investments provided to the Subscriber by the Company or Shares, will not violate any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state applicable securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to laws of the Subscriber’s Advisors, if anyjurisdiction.
h. In evaluating (h) The Subscriber or its duly authorized representative realizes that because of the suitability inherently speculative nature of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated investment is subject to a high degree of financial and market risk that can result in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisorssubstantial or, if anyat times, by the Company in writingeven total losses.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. (i) The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity of the investment in the Shares and could afford complete loss of such investment.
(j) The Subscriber is not subscribing for Shares as a result of or subsequent to any advertisement, article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
(k) Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Tokens Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for an indefinite period any form of timedamages as a result of any of the foregoing actions.
o. The Subscriber: (il) if a natural person, represents All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of this Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the Subscriber will immediately furnish revised or corrected information to the Company.
(m) The Subscriber represents and warrants to the Company that neither the Subscriber nor any of its organization, the consummation affiliates has directly or indirectly traded any securities of the transactions contemplated hereby is authorized byCompany, and will including without limitation, making any short sales or engaging in any hedging transaction with respect to such securities (collectively, “Prohibited Transactions”), since becoming aware of the Offering. Furthermore, Subscriber shall not result engage in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out any Prohibited Transactions through the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orfinal Closing Date.
Appears in 2 contracts
Samples: Subscription Agreement (California Gold Corp.), Common Stock Subscription Agreement (California Gold Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. (a) Subscriber is acquiring the Units for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act, and applicable state securities laws.
(b) The Subscriber acknowledges and understands: understands that (iA) that the Tokens offered pursuant to the Memorandum Units (1) have not been and will not be registered under the Securities Act or any state securities laws; , (2) will be issued in reliance upon an exemption from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) and/or Regulation D thereof and (3) will be issued in reliance upon exemptions from the registration and prospectus delivery requirements of state securities laws which relate to private offerings, and (B) the Subscriber must therefore bear the economic risk of such investment indefinitely unless a subsequent disposition thereof is registered under the Securities Act and applicable state securities laws or is exempt therefrom. Subscriber further understands that such exemptions depend upon, among other things, the bona fide nature of the investment intent of the Subscriber expressed herein. Pursuant to the foregoing, the Subscriber acknowledges that the certificates representing each of the Shares, the Warrants and the Exercise Shares shall bear a restrictive legend substantially as follows: "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER THE APPLICABLE SECURITIES LAWS OR (II) AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL ARE BOTH REASONABLY SATISFACTORY TO THE COMPANY, HAS BEEN DELIVERED TO THE COMPANY AND SUCH OPINION STATES THAT THE SECURITIES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION."
(c) The Subscriber has knowledge, skill and experience in financial, business and investment matters relating to an investment of this type and is capable of evaluating the merits and risks of such investment and protecting the Subscriber's interest in connection with the acquisition of the Units. The Subscriber understands that the acquisition of the Units is a speculative investment and involves substantial risks and that the Subscriber could lose the Subscriber's entire investment in the Units. To the extent deemed necessary by the Subscriber, the Subscriber has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of purchasing and owning the Share, the Warrants and the Exercise Shares. The Subscriber has the ability to bear the economic risks of the Subscriber's investment in the Company, including a complete loss of the investment, and the Subscriber has no need for liquidity in such investment.
(d) The Subscriber has been furnished by the Company all information (or provided access to all information) regarding the business and financial condition of the Company, its expected plans for future business activities, the attributes of the Securities and the merits and risks of an investment in the Securities which the Subscriber has requested or otherwise needs to evaluate the investment in the Company.
(e) Subscriber is in receipt of and has carefully read and understands the following items:
(i) Annual Report on Form 10-KSB for the period ended June 30, 2006 filed by the Company with the SEC;
(ii) Quarterly Report on Form 10-QSB for the period ended September 30, 2006 filed by the Company with the SEC;
(iii) Current Reports on Form 8-K filed by the Company with the SEC on June 28, 2006;
(iv) Confidential Private Placement Memorandum, dated November 14, 2006 (together with the exhibits thereto, collectively, items (i) through (iv), the "Disclosure Documents").
(f) In making the proposed investment decision, the Subscriber is relying solely on investigations made by the Subscriber and the Subscriber's representatives. The Subscriber acknowledges that documents listed in Section 5(e) are the only information provided to the Subscriber by the Company and that the offering Subscriber is not relying on any other information in making the proposed investment decision. The offer to sell the Units was communicated to the Subscriber in such a manner that the Subscriber was able to ask questions of and sale receive answers from the management of the Tokens Company concerning the terms and conditions of the proposed transaction and that at no time was the Subscriber presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general or public advertising or solicitation.
(g) The Subscriber acknowledges that the Subscriber has been advised that:
(i) The Units, and the Securities that comprise the Units, offered hereby have not been approved or disapproved by the SEC or any state securities commission nor has the SEC or any state securities commission passed upon the accuracy or adequacy of any representations by the Company. Any representation to the contrary is intended a criminal offense.
(ii) In making an investment decision, the Subscriber must rely on its own examination of the Company and the terms of the Offering, including the merits and risks involved. The Units, and the Securities that comprise the Units, have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of any representation. Any representation to be exempt from registration the contrary is a criminal offense.
(iii) The Shares and the Warrants are and, when issued, the Exercise Shares will be, "Restricted Securities" within the meaning of Rule 144 under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws laws, pursuant to registration or an exemption from such registration is availabletherefrom. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means is aware that the Subscriber may be required to bear the financial risks of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its this investment in the Tokens for an indefinite period of time.
o. (h) The Subscriber: Subscriber acknowledges and is aware that there has never been any representation, guarantee or warranty made by the Company or any officer, director, employee or agent or representative of the Company, expressly or by implication, as to (i) if a natural person, represents the approximate or exact length of time that the Subscriber has full power and authority will be required to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofremain an owner of any Security; (ii) the percentage of profit and/or amount of or type of consideration, profit or loss to be realized, if any, as a corporation, partnershipresult of this investment; or (iii) that the limited past performance or experience on the part of the Company, or limited liability company any future expectations will in any way indicate the predictable results of the ownership of any Security or partnership, or association, joint stock company, trust, unincorporated organization or of the overall financial performance of the Company.
(i) The Subscriber agrees to furnish the Company such other entity, information as the Company may reasonably request in order to verify the accuracy of the information contained herein and agrees to notify the Company immediately of any material change in the information provided herein that occurs prior to the Company's acceptance of this Agreement.
(j) The Subscriber further represents and warrants that such entity was not formed for the specific purpose Subscriber is an "accredited investor" within the meaning of acquiring the Tokens, such entity is duly organized, validly existing and in good standing Rule 501 of Regulation D under the laws Securities Act, and Subscriber has executed the Certificate of Accredited Investor Status, attached hereto as Exhibit B.
(k) As of the state date of this Agreement the Subscriber and its organizationaffiliates do not have, and during the 30-day period prior to the date of this Agreement the Subscriber and its affiliates have not entered into, any "put equivalent position" as such term is defined in Rule 16a-1 under the Exchange Act or short sale positions with respect to the Common Stock of the Company. Until the registration statement referred to in Section 4(c) is declared effective, the consummation of the transactions contemplated Subscriber hereby is authorized byagrees not to, and will cause its affiliates not result to, enter into any such "put equivalent position" or short sale position. The foregoing representations and warranties and undertakings are made by the Subscriber with the intent that they be relied upon in a violation determining its suitability as an investor and the Subscriber hereby agrees that such representations and warranties shall survive its purchase of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orUnits.
Appears in 2 contracts
Samples: Subscription and Registration Rights Agreement (Cubic Energy Inc), Subscription and Registration Rights Agreement (Bruggeman William)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to PPO Units, the Memorandum Common Stock and Warrants included in the PPO Units and the Warrant Shares (collectively, the “Securities”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Securities. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that no public market now exists, and there may never be a public market for, the Units and/or Warrants, that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control..
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the Registration Rights Agreement and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement and the Registration Rights Agreement, assuming due execution by the parties hereto and thereto, constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their respective terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Subscription Agreement;
(ii) The Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Securities pursuant to registration of the Securities under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensSecurities prior to the expiration of a period of one year after the date of transfer of the Securities under this Subscription Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Securities prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Securities, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.
i. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors in securities of the Company.
j. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Securities and could afford complete loss of timesuch investment.
o. k. The Subscriber: (i) if Subscriber is not subscribing for Securities as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
l. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 2 contracts
Samples: Subscription Agreement (Nevada Gold Holdings, Inc.), Subscription Agreement (Far East Golden Resources Investment LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company and the Majority Stockholder that each of the statements contained in this Section 5 is true and correct:
(a) Subscriber understands and acknowledges that the Shares are being granted to Subscriber under the exemption from registration provided for in Section 4(2) of the Securities Act of 1933, as amended (the “Act”), and agrees withaccordingly, must be held indefinitely by Subscriber, unless the Shares are subsequently transferred in transactions that are either registered under the Act or exempt from registration. Subscriber understands that the Company as follows:
a. The is under no obligation to register the Shares under the Act or to file for or comply with an exemption from registration, and recognizes that exemptions from registration, in any case, are limited and may not be available when Subscriber may wish to sell, transfer, pledge or otherwise dispose of the Shares. Subscriber acknowledges that this transaction has not been scrutinized by the United States Securities and understandsExchange Commission or by any federal or state or foreign regulatory or governmental authority charged with the administration of the securities laws;
(b) Subscriber acknowledges that she has had access to all corporate records and accounts of the Company;
(c) Subscriber understands and has fully considered, for purposes of owning the Shares, and understands that: (i) that owning the Tokens offered pursuant Shares is a speculative investment which involves a high degree of risk of loss of the entire grant to the Memorandum have not been and will not be registered under the Securities Act or any state securities lawsSubscriber; (ii) that there will be no public market for the offering Shares and sale accordingly, it may not be possible for Subscriber to liquidate the Shares in case of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreementan emergency; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any right to transfer the Shares is limited as set forth in the Stockholders Agreement attached hereto as Exhibit A;
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”d) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of owning the Subscriber’s investment in Shares;
(e) Subscriber has had the Tokens and has obtainedopportunity to discuss the tax consequences of ownership of the Shares with her representatives, in the Subscriber’s judgmentincluding her attorney, sufficient information from the Company or Subscriber’s Advisorsand/or accountant, if any, to evaluate ;
(f) Subscriber will own the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens Shares solely for Subscriber’s own account account, for investment purposes only, and not with a view to to, or in connection with, any resale or distribution thereof. Subscriber agrees not to sell, transfer, pledge or otherwise dispose of the Shares in whole or in partviolation of the provisions of the Act. The Subscriber has no contract, undertaking, understanding, agreement or arrangement, formal or informal, with any person to sell sell, transfer, pledge or otherwise transfer all to any person or otherwise dispose of the Shares, or any part of thereof, any interest therein or any rights thereto; the Tokens and the undersigned Subscriber has no present plans to enter into any such contract, undertaking, agreement or arrangement.;
m. The (h) Subscriber understands that a notation restricting transfer of the Shares will be made on the stock transfer books of the Company and consents to the placement of a legend on the Shares in a form substantially as follows: The foregoing representations and warranties are made by Subscriber and Subscriber hereby agrees that it must bear such representations and warranties shall survive the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives grant of the Company, indefinitely because Shares by the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any timeCompany to Subscriber.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Stock Agreement (Harbor Global Co LTD), Stock Agreement (Harbor Global Co LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as of the date hereof as follows:
a. (a) The Subscriber acknowledges is an Eligible Holder and understands: either (i) held on the Record Date the aggregate principal amount of Notes Claims set forth on Item 1 of such Subscriber’s Beneficial Holder Subscription Form or (ii) is a Transferee Eligible Holder who holds a Notes Claim as set forth on Item 1B of such Subscriber’s Subscription Period Transfer Notice(s) validly completed and signed by the Subscriber and delivered to the Subscription Agent in accordance with the Rights Offering Procedures.
(b) The Subscriber has the requisite corporate or other applicable power and authority to execute and deliver this Agreement and, if applicable, the Beneficial Holder Subscription Form and perform its obligations hereunder and thereunder. This Agreement and the consummation by the Subscriber of the transactions contemplated hereby have been duly authorized by all requisite action.
(c) This Agreement has been duly and validly executed and delivered by the Subscriber and constitutes the valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms. Except to the extent the Subscriber is an individual, the Subscriber is a duly organized entity validly existing under the laws of the jurisdiction of its incorporation or formation.
(d) Except as provided under applicable state securities laws and subject to the conditions contained in Section 6, this subscription is and shall be irrevocable, except that the Tokens offered pursuant to Subscriber shall have no obligation hereunder if this Agreement is for any reason rejected or the Memorandum Rights Offerings are for any reason terminated.
(e) The Subscriber understands that the Rights Offering Shares have not been and will not be registered under the Securities Act or nor qualified under any state securities laws; (ii) laws and that the offering Rights Offering Shares are being offered and sale sold pursuant to an exemption from such registration and qualification requirements based on an exemption provided by section 1145(a) of the Tokens is intended Bankruptcy Code.
(f) The Subscriber has read and understands this Agreement, the Plan, the Disclosure Statement, the Rights Offering Procedures and the Beneficial Holder Subscription Form and understands the terms and conditions herein and therein and the risks associated with the Company and its business as described in the Disclosure Statement. The Subscriber has, to be exempt from registration under the Securities Actextent deemed necessary by the Subscriber, by virtue of Section 4(a)(2) thereof, based, in part, upon discussed with legal counsel the representations, warranties and agreements that the Subscriber is making herein.
(g) No third-party consents or approvals (including governmental consents or approvals) are required to be obtained, made or given in order to permit the Subscriber to execute and deliver this Agreement and to perform its obligations hereunder.
(h) Neither the execution and delivery of this Agreement by the Subscriber nor the consummation of any of the transactions contemplated hereby will violate or conflict with, or result in a breach of, or constitute a default under (whether upon notice or the passage of time or both) any (i) contract to which the Subscriber contained is a party or (ii) applicable laws, regulations, orders, judgments and decrees to which the Subscriber is subject, in each case, to the extent that the default thereto would cause a material adverse effect on such Subscriber’s ability to fulfill its obligations set forth herein.
(i) The Subscriber is not relying upon any information, representation or warranty by the Company other than as set forth in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Plan, or the Disclosure Statement. The Subscriber and has consulted, to the extent deemed appropriate by the Subscriber, with the Subscriber’s attorneyown advisors as to the financial, accountanttax, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received legal and have carefully reviewed related matters concerning an investment in the Memorandum, this Subscription Agreement Rights Offering Shares and on that basis believes that an investment in the documents annexed hereto or referenced herein (collectively, Rights Offering Shares is suitable and appropriate for the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such informationSubscriber.
c. (j) The Subscriber hereby acknowledges foregoing representations and understands, and has been advised, that there warranties will be no or very limited disclosure materials true on the date hereof and as of any kind regarding the Closing Date. If any of the Company’s investments provided such representations and warranties are not true prior to the Subscriber acceptance of this Agreement by the Company or any prior to the Closing Date, the Subscriber will give written notice of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of such fact to the Company, its management, crypto-currencies specifying which representations and other digital asset securities, together with warranties are not true and the Company’s stated objectivesreasons therefor.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. (k) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In such knowledge and experience in financial and business matters that it is capable of evaluating the suitability merits and risks of the investment contemplated by this Agreement, and it is able to bear the economic risk of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated sufficient financial resources available to support the risks loss of investing all or a portion of its investment in the Tokens, is able to bear such risksCompany, and has determined that the Tokens are a suitable investment no need for the Subscriber.
k. The Subscriber is not relying on the Company or any of liquidity in its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if anyCompany.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. (l) The Subscriber understands and agrees that it must bear the substantial economic risks risk of this investment indefinitely unless its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently Rights Offering Shares are registered under pursuant to the Securities Act or an exemption from the registration requirements thereunder is available, and unless the disposition of such Rights Offering Shares is qualified under applicable state securities laws or an exemption from such registration qualification is available. It The Subscriber further understands that there is no assurance that any exemption from the Securities Act will be available or, if available, that such exemption will allow the Subscriber to Transfer all or part of its Rights Offering Shares, in the amounts or at the times the Subscriber might propose.
(m) The Subscriber is not anticipated that there a party to any contract with any Person (other than, if applicable, the Backstop Agreement, the Restructuring Support Agreement, all other agreements to which it will be a party as contemplated by the Backstop Agreement, the Restructuring Support Agreement and the Plan and any market contract giving rise to the expense reimbursement thereunder) that would give rise to a valid Claim against the Debtors for resale of a brokerage commission, finder’s fee or like payment in connection with the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of timeCompany.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The By subscribing to the Offering, the Subscriber (and, if the Subscriber is purchasing the Shares subscribed for hereby acknowledgesin a fiduciary capacity, the person or persons for whom the Subscriber is so purchasing) represents and warrants toto the Company, which representations and agrees withwarranties are true and complete in all material respects, as of the Company as followsdate of each Closing:
a. (a) The Subscriber has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Agreement and to carry out the provisions thereof. All actions on the Subscriber’s part required for the lawful subscription to the Offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Agreement will be a valid and binding obligation of the Subscriber, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.
(b) The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any public availability of the Company’s investments provided to current Offering Circular, which can be viewed on the Subscriber by SEC Xxxxx Database under the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber filed number 024-10856. This Offering Circular is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with made available in the Company’s stated objectives.
e. The Subscriber acknowledges most recent qualified offering statement on SEC Form 1-A, as amended, deemed qualified on _______________, 2018. In the Company’s Offering Circular, it makes clear the terms and understands that neither the SEC nor any state securities commission has approved or disapproved conditions of the Offering or passed upon or endorsed and the merits risks associated therewith are described. The Subscriber has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Tokens or Company and has had the Offering.
f. opportunity to review the Company’s operations and facilities. The Subscriber and its Advisors, if any, have has also had a reasonable the opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerningand its management regarding the terms and conditions of this investment. The Subscriber acknowledges that except as set forth herein, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions no representations or warranties have been answered made to the full satisfaction of the Subscriber and its AdvisorsSubscriber, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation advisors or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if anyrepresentative, by the Company in writingor others with respect to the business or prospects of the Company or its financial condition.
i. (c) The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters to be capable of utilizing the such information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Shares, and to make an informed decision relating thereto. Alternatively, the Subscriber has obtained, utilized the services of a purchaser representative and together they have sufficient experience in the Subscriber’s judgment, sufficient financial and business matters that they are capable of utilizing such information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such the Subscriber’s investment in the Shares, and to make an informed investment decision with respect relating thereto. The Subscriber has evaluated the risks of investing an investment in the TokensShares, is able to bear such risks, including those described in the section of the Offering Circular entitled “Risk Factors,” and has determined that the Tokens are a investment is suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part adequate financial resources for an investment of this character. The Subscriber could bear a complete loss of the Tokens and Subscriber’s investment in the Subscriber has no plans to enter into any such agreement or arrangementCompany.
m. (d) The Subscriber understands that the Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and agrees that it must bear reliance on such exemption is predicated in part on the substantial economic risks truth and accuracy of its investment the Subscriber’s representations and warranties, and those of the other purchasers of the Shares in the Tokens andOffering. The Subscriber further understands that the Shares are not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state, correspondinglysince the Shares are “covered securities” under the National Securities Market Improvement Act of 1996. The Subscriber covenants not to sell, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated transfer or otherwise disposed dispose of any Shares unless subsequently such Shares have been registered under the Securities Act and under applicable state securities laws laws, or an exemption exemptions from such registration is requirements are available. It is not anticipated .
(e) The Subscriber acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will be ever exist. The Company has no obligation to list any of the Shares on any market for or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Tokens, Shares. The Subscriber must bear the economic risk of this investment indefinitely and such securities will not be freely transferable at any timethe Subscriber acknowledges that the Subscriber is able to bear the economic risk of losing the Subscriber’s entire investment in the Shares.
n. (f) The Subscriber has adequate means represents that either: (i) the Subscriber is an “accredited investor” within the meaning of providing Rule 501 of Regulation D under the Securities Act; or (ii) the Purchase Price, together with any other amounts previously used to purchase Shares in the Offering, does not exceed ten percent (10%) of the greater of the Subscriber’s annual income or net worth (or in the case where the Subscriber is a non-natural person, their revenue or net assets for such Subscriber’s current financial needs and foreseeable contingencies and most recently completed fiscal year end). The Subscriber represents that to the extent it has no need for liquidity from any questions with respect to its status as an accredited investor, or the application of the investment in the Tokens for an indefinite period of timelimits, it has sought professional advice.
o. The Subscriber: (ig) if Within five (5) days after receipt of a natural personrequest from the Company, represents that the Subscriber has full power hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and authority to execute and deliver this Subscription Agreement such documents as may reasonably be necessary to comply with any and all other related agreements laws and regulations to which the Company is or certificates may become subject, including, without limitation, the need to determine the accredited investor status of the Company’s stockholders.
(h) The Subscriber acknowledges that the Per Share Purchase Price of the Shares to be sold in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to carry out value. The Subscriber further acknowledges that future offerings of securities of the provisions hereof Company may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.
(i) The Subscriber maintains the Subscriber’s domicile (and thereof; is not a transient or temporary resident) at the address provided with the Subscriber’s subscription.
(j) If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Subscriber’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.
(k) If the Subscriber is purchasing the Shares in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or any other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is Subscriber has been duly organized, validly existing authorized and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority empowered to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out subscription documents. Upon request of the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution Subscriber will provide true, complete and delivery current copies of this Subscription Agreement has been duly authorized by all necessary actionrelevant documents creating the Subscriber, this Subscription Agreement has been duly executed and delivered on behalf authorizing its investment in the Company and/or evidencing the satisfaction of such entity and is a legal, valid and binding obligation of such entity; orthe foregoing.
Appears in 2 contracts
Samples: Subscription Agreement (Apex Farms Corp.), Subscription Agreement (Apex Farms Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company that:
4.1 This Agreement has been duly authorized, executed and delivered by the Subscriber, and agrees withconstitutes a legal, valid and binding obligation of the Company as follows:Subscriber, enforceable in accordance with its terms.
a. 4.2 The Subscriber acknowledges and understands: (i) that understands the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale confidential nature of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution matter of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and agrees not to disclose the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree name of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any matters associated therewith prior to the public announcement by the Company of its respective officersthe transactions effected hereby. Further, directors, employees, agents, representatives, affiliates or related partiesSubscriber understands that trading in the Common Stock of the Company based upon information derived from the Company in the process of this Subscription is strictly prohibited and subject to legal prohibitions and sanctions under federal securities laws.
d. 4.3 The Subscriber has had the opportunity to review the Bridge Note and this Agreement with its counsel or other financial advisors.
4.4 The Subscriber has knowledge and experience in financial and business matters sufficient to enable it to evaluate the merits and risks of an investment in the Purchased Securities.
4.5 The Subscriber is purchasing acquiring the Tokens based on Subscriber’s Purchased Securities hereunder for its own assessment account, solely for investment and knowledge not with a view to the resale or distribution thereof within the meaning of the CompanySecurities Act of 1933, its management, crypto-currencies and other digital asset securities, together with as amended (the Company’s stated objectives"Securities Act").
e. 4.6 The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved its acquisition of the Offering or passed upon or endorsed Purchased Securities is an illiquid and may be a long-term investment; and, without impairing its financial condition, it is able to hold the merits Purchased Securities for an indefinite period of the Tokens or the Offeringtime and would be able to suffer a complete loss of its investment without undue financial hardship.
f. 4.7 The Subscriber and its Advisors, if any, have has had a reasonable an opportunity to ask questions of and receive answers from a person or persons acting on behalf the Company and its officers concerning the Company and the terms and conditions of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Purchased Securities and has obtained, in the Subscriber’s judgment, sufficient had an opportunity to obtain additional information from the Company to the extent deemed necessary or Subscriber’s Advisors, if any, advisable by the Subscriber in order to evaluate verify the merits and risks accuracy of such investment and to make an informed investment decision with respect theretothe information obtained. The Subscriber has evaluated has, to the risks of investing extent deemed necessary by the Subscriber, consulted with its own advisors (including the Subscriber's attorney, accountant or investment advisor) regarding the Subscriber's investment in the TokensPurchased Securities and understands the significance and effect of its representations, is able warranties, acknowledgments and agreements set forth in this Agreement.
4.8 The Subscriber has reviewed copies of the public filings of the Company, including those on Forms 10-KSB and 10-QSB. The Subscriber has, to bear such risks, and has determined that the Tokens are a suitable investment for extent deemed necessary by the Subscriber, completed due diligence and such independent investigation concerning the Company and the terms and conditions of the sale of the Purchased Securities contemplated hereby as it has deemed advisable.
k. 4.9 The Subscriber is not relying on acknowledges that neither the Company or Company, nor any of its directors, officers, employeesrepresentatives or affiliates, agents nor any other person or other representatives entity, has made any representations or warranties with respect to the legalCompany, tax, economic and related considerations of an investment in its business or the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if anyPurchased Securities other than as set forth herein.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. 4.10 The Subscriber understands and agrees that it must bear the substantial economic risks of its investment Purchased Securities have not been registered under the Securities Act in reliance upon an exemption from the Tokens and, correspondingly, the business objectives registration requirements of the CompanySecurities Act pursuant to Section 4(2) thereof, indefinitely because that the Tokens Purchased Securities have not been registered under applicable state securities laws, and that the Purchased Securities may not be sold, hypothecated sold or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws (the Company being under no obligation to so register such Purchased Securities) or an exempted from registration. The Subscriber further understands that the exemption from such registration is available. It afforded by Rule 144 promulgated under the Securities Act is not anticipated presently available with respect to the Purchased Securities.
4.11 The Subscriber is an "Accredited Investor" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act and has accurately completed Appendix A to this Agreement.
4.12 The Subscriber acknowledges that there will be neither the Company nor any market for resale person or entity acting on its behalf has offered to sell any of the Tokens, and such securities will not be freely transferable at any time.
n. The Purchased Securities to the Subscriber has adequate by means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period any form of time.
o. The Subscriber: general solicitation or advertising, including without limitation (i) if a natural personany advertisement, represents that the Subscriber has full power article, notice or other communication published in any newspaper, magazine or similar media, or broadcast over television or radio, and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, any seminar or limited liability company meeting whose attendees have been invited by any general solicitation or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orgeneral advertising.
Appears in 2 contracts
Samples: Subscription Agreement (Jacobs Financial Group, Inc.), Subscription Agreement for Promissory Note and Common Stock (Jacobs Financial Group, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees and covenants with, the Company Fund, any Series in which the Subscriber seeks to invest and Potomac, as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens date hereof and as of each date on which any investment in an Interest is intended to be exempt from registration under the Securities Act, by virtue made (“Date of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “AdvisorsInvestment”), have received that:
(a) The Subscriber has been furnished and have has carefully reviewed read the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has (b) No representations or warranties have been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided made to the Subscriber by the Company Fund, a Series, a placement agent or Potomac or any agent, employee or representative of its respective officersthe Fund, directorsa Series, employeesa placement agent or Potomac, agents, representatives, affiliates or related parties.
d. The and in entering into this transaction the Subscriber is purchasing not relying upon any information, other than that contained in the Tokens based on Memorandum, this Agreement, and any additional documents furnished by the Fund, a Series or Potomac to the Subscriber and the results of the Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectivesindependent investigation.
e. (c) The Subscriber acknowledges and understands that neither the SEC nor any state securities commission Subscriber, individually or through its duly authorized officers, employees or agents, has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable an opportunity to (i) ask questions of and receive answers from a person or persons acting on behalf Potomac concerning the terms and conditions of this investment and the proposed operation of each of the Company concerning, among other related matters, Series and (ii) obtain information necessary to verify the Offering, accuracy of the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered information provided to the full satisfaction of Subscriber in the Memorandum.
(d) The Interest(s) being subscribed for by the Subscriber is(are) being purchased for the Subscriber’s own account, for investment and its Advisors, if any.
g. not for distribution or resale to others. The Subscriber has no plan or intention to sell, exchange or otherwise dispose of its Interest(s). The Subscriber understands and acknowledges that Interests have not reproducedbeen registered under the Securities Act of 1933, duplicated as amended (“1933 Act”), or delivered this Subscription Agreement the Offering Documents securities laws of any state or other related documents or information to any other personjurisdiction by reason of specific exemptions under the provisions thereof, except to which depend in part upon the representations made by the Subscriber in this Agreement in connection with its purchase of Interests, and that such registration is not contemplated. The Subscriber understands and acknowledges that Potomac, the Fund and the Series are relying upon the Subscriber’s Advisorsrepresentations and agreements contained in this Agreement (and other information furnished by the Subscriber, if any.
h. In evaluating applicable) for the suitability purpose of determining whether this transaction meets the requirements for such exemptions. The Subscriber understands and acknowledges that its Interest(s) may not be sold, transferred or otherwise disposed of except pursuant to registration or an exemption therefrom under the 1933 Act and applicable securities laws of any state or other jurisdiction and the provisions of the LLC Agreement. As a consequence, the Subscriber understands and acknowledges that the Subscriber must bear the economic risks of an investment in the CompanySeries for an indefinite period of time. The Subscriber understands that the LLC Agreement contains certain restrictions related to the transfer of Interests.
(e) The Subscriber has made an independent determination of the investment, accounting, legal and tax aspects of acquiring its Interest(s) and has depended on the advice of its own counsel, advisors and accountants, and acknowledges that none of the Fund, the Series and Potomac has any responsibility with respect to such matters and such advice. On that basis, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated believes that an investment in the Offering Documents or as contained in documents so furnished to Interests is suitable and appropriate for the Subscriber or its Advisors, if any, by the Company in writing.
i. Subscriber. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient necessary knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available matters to enable it in connection with the Offering to evaluate the merits and risks of an investment in the Interests. The Subscriber understands that the purchase of Interests involves certain risks, including those described under the caption “Risk Factors” in the Memorandum.
(f) None of the Fund, the Series or Potomac nor any person acting on behalf of the Fund, a Series or Potomac has offered or sold any Interest to the Subscriber by means of any form of general solicitation or general advertising. The Subscriber has not received, paid or given, directly or indirectly, any commission or remuneration for or on account of any sale, or the solicitation of any sale, of Interests to the Subscriber.
(g) The Subscriber has reviewed the Subscriber’s financial condition and commitments, and is satisfied that the Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, through a purchase of Interests, and has adequate net worth and means of providing for the Subscriber’s current needs and contingencies, has the ability to sustain a complete loss of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies Interests and has no need for liquidity from its in the Subscriber’s investment in the Tokens for an indefinite period of timeInterests.
o. (h) Set forth on the signature page of this Agreement is the true and correct address of the Subscriber’s residence or principal place of business. The only jurisdiction in which an offer to sell Interests was made to the Subscriber is the jurisdiction in which such residence or principal place of business is situated.
(1) Neither the execution, delivery or performance of this Agreement or any other document required to be executed and delivered by the Subscriber in connection with this subscription for Interests nor the consummation of any of the transactions contemplated hereby or thereby by the Subscriber: (i) if a natural personwill violate or conflict with the Subscriber’s articles or certificate of incorporation, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all bylaws or other related agreements or certificates and to carry out the provisions hereof and thereof; organizational document, (ii) if a corporationwill violate or conflict with any law, partnershiprule, regulation, judgment, order or decree of any court or other governmental body, (iii) will conflict with or result in any breach of or default under, permit any party to accelerate any rights under or terminate, or limited liability company result in the creation of any lien, charge or partnershipencumbrance pursuant to any provision of any material contract, indenture, mortgage, lease, franchise, license, permit, authorization, instrument or agreement of any kind to which the Subscriber is a party or by which the Subscriber is bound or to which the properties or assets of the Subscriber are subject, or association, joint stock company, trust, unincorporated organization (iv) will require the consent or approval of any other person other than such consents or approvals as have already been obtained.
(i) The Subscriber is a corporation or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is organization duly incorporated or organized, validly existing and in good standing under the laws of the its state of its organization, incorporation or organization and has the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full requisite power and authority to execute carry on its business and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensoperations as now being conducted, (ii) the execution and delivery of this Subscription Agreement has and each other document required to be executed and delivered by the Subscriber in connection with its subscription for Interests and the performance hereof and thereof have been duly authorized by all necessary actionappropriate action and as such this Agreement, when the Subscriber’s subscription is accepted, and each such other document will constitute valid and legally binding obligations of the Subscriber in accordance with their terms, and (iii) the Subscriber shall deliver to Potomac such evidence of the foregoing as Potomac may reasonably require, whether by way of certified resolution or otherwise.
(3) The Subscriber represents and warrants that shareholders, partners and other holders of equity or beneficial interests in the Subscriber are not able (i) to individually decide whether to participate or the extent of their participation in the Subscriber’s investment in the Interests (i.e., shareholders, partners or other holders of equity or beneficial interest in the Subscriber cannot determine whether their capital will form part of the capital invested by the Subscriber in Interests) or (ii) otherwise to direct the allocation of any of the Subscriber’s assets.
(4) The Subscriber represents and warrants that, to the best of the Subscriber’s knowledge, the Subscriber does not control, nor is the Subscriber controlled by or under common control with, any other investor in any Series of the Fund, or if the Subscriber believes that such a relationship exists, the Subscriber has identified such investor as well as such relationship on the signature pages of this Subscription Agreement.
(5) The Subscriber represents and warrants that, if any person will have a beneficial interest in the Interests to be acquired hereunder (other than as shareholder, partner or other beneficial owner of equity interests in the Subscriber), the Subscriber has indicated on the signature page of this Agreement has been duly executed and delivered on behalf the name of such entity beneficial owners.
(6) The Subscriber represents and warrants that it was not formed for the purpose of investing in any Series of the Fund and will not invest more than 40% of its committed capital in any Series of the Fund.
(7) The Subscriber is not subject to the attribution rules under Section 3(c)(1)(A) of the Investment Company Act of 1940, as amended (“1940 Act”), because it is not a legal“Covered Company” (as defined in Rule 3c-1 of the 1940 Act) and thus the Subscriber (as a whole), valid and binding obligation not the Subscriber’s beneficial owners, shall be deemed to be the beneficial owner of such entity; orthe Subscriber’s Interests for purposes of Section 3(c)(1) of the 1940 Act.
(j) The Subscriber is / is not (please check as appropriate) a “benefit plan investor.”
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. 5.1 The Subscriber hereby acknowledges, represents makes the following representations and warrants to, and agrees with, warranties to the Company as followsCompany:
a. (a) The Subscriber acknowledges and understands: (i) understands that the Tokens offered pursuant to the Memorandum Shares have not been and will not be registered under the Securities Act Act, or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, reliance upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained thereinfrom regulation for non-public offerings. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company Shares or any of its respective officersinterest therein may not be, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens andShares or any interest therein will not be, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated resold or otherwise disposed of by the undersigned unless the Shares are subsequently registered under the Securities Act and applicable under appropriate state securities laws or unless the Company receives an opinion of counsel satisfactory to it that an exemption from such registration is available. It ;
(b) The Subscriber is acquiring the Shares for investment for its own account, not anticipated that there will be any market as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, and that such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or entity or to any third person or entity with respect to any of the TokensShares;
(c) The Subscriber, or its purchaser representative, within the meaning of Regulation D, Rule 501(h), promulgated by the Securities and such Exchange Commission (its “Purchaser Representative”), has substantial experience in evaluating and investing in private placement transactions of securities will not be freely transferable at any time.
n. in companies similar to the Company and acknowledges that the Subscriber or its Purchaser Representative, can protect its own interests. The Subscriber or its Purchaser Representative has adequate means such knowledge and experience in financial and business matters so that the Subscriber or its Purchaser Representative is capable of providing for such Subscriber’s current financial needs evaluating the merits and foreseeable contingencies and has no need for liquidity from risks of its investment in the Tokens Company;
(d) The Subscriber understands and acknowledges that an investment in the Company is highly speculative and involves substantial risks. The Subscriber can bear the economic risk of the Subscriber’s investment and is able, without impairing the Subscriber’s financial condition, to hold the Shares for an indefinite period of timetime and to suffer a complete loss of such Investor’s investment;
(e) The Subscriber has had an opportunity to ask questions of, and receive answers from, the officers of the Company concerning the Subscription Agreement, the exhibits and schedules attached hereto and thereto and the transactions contemplated by the Subscription Agreement, as well as the Company’s business, management and financial affairs, which questions were answered to its satisfaction. The Subscriber believes that it has received all the information such Investor considers necessary or appropriate for deciding whether to purchase the Shares. The Subscriber understands that such discussions, as well as any information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily a thorough or exhaustive description. The Subscriber acknowledges that any business plans prepared by the Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The Subscriber also acknowledges that it is relying solely on its own counsel and not on any statements or representations of the Company or its agents for legal advice with respect to this investment;
(f) The Subscriber is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.;
o. (g) The Subscriber: (i) if a natural person, represents that residency of the Subscriber (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on the Subscriber’s signature page to this Subscription Agreement;
(h) The Subscriber has full all requisite power and authority to execute and deliver this the Subscription Agreement and all other related agreements or certificates Agreement, to purchase the Shares hereunder and to carry out and perform its obligations under the terms of the Subscription Agreement. All action on the part of the Subscriber necessary for the authorization, execution, delivery and performance of the Subscription Agreement, and the performance of all of the Subscriber’s obligations under the Subscription Agreement, has been taken or will be taken prior to the Closing;
(i) The Agreement, when executed and delivered by the Subscriber, will constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their terms except: (i) to the extent that any indemnification provisions hereof contained herein may be limited by applicable law and thereof; principles of public policy, (ii) if as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (iii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity;
(j) No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or third person is required to be obtained by the Subscriber in connection with the execution and delivery of the Subscription Agreement by the Subscriber or the performance of the Subscriber’s obligations hereunder;
(k) The Subscriber has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by the Subscription Agreement. With respect to such matters, the Subscriber relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Subscriber understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a corporationresult of this investment or the transactions contemplated by the Subscription Agreement;
(l) the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general solicitation or general advertising including advertisements, partnershiparticles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or limited liability company any seminar or partnershipmeeting whose attendees have been invited by general solicitation or general advertising; and
(m) The Subscriber has been informed of and understands the following:
(i) There are substantial restrictions on the transferability of the Shares;
(ii) No federal or state agency has made any finding or determination as to the fairness for public investment, nor any recommendation nor endorsement, of the Shares;
(n) None of the following information has ever been represented, guaranteed, or associationwarranted to the Subscriber, joint stock companyexpressly or by implication by any broker, trustthe Company, unincorporated organization or agent or employee of the foregoing, or by any other entityperson:
(i) The approximate or exact length of time that the Subscriber will be required to remain a holder of the Shares;
(ii) The amount of consideration, profit, or loss to be realized, if any, as a result of an investment in the Company;
(iii) That the past performance or experience of the Company, its officers, directors, associates, agents, affiliates, or employees or any other person will in any way indicate or predict economic results in connection with the plan of operations of the Company or the return on the investment;
(o) The Subscriber has not distributed any information relating to this investment to anyone other than his purchaser representative, if any, and no other person except such personal representative and the Subscriber has used this information;
5.2 Each Subscriber who is a Non-U.S. person (as defined herein) hereby represents and warrants to the Company as follows:
(a) This Agreement is made by the Company with such Subscriber who is a Non-U.S. person in reliance upon such Non-U.S. person’s representations, warranties and covenants made in this Section 5.2;
(b) Such Non-U.S. person has been advised and acknowledges that:
(i) the Shares have not been registered under the Securities Act, the securities laws of any state of the United States or the securities laws of any other country;
(ii) in issuing and selling the Shares to such Non-U.S. person pursuant hereto, the Company is relying upon the “safe harbor” provided by Regulation S and/or on Section 4(2) under the Securities Act;
(iii) it is a condition to the availability of the Regulation S “safe harbor” that the Shares not be offered or sold in the United States or to a U.S. person until the expiration of a period of one year following the Closing Date; notwithstanding the foregoing, prior to the expiration of one year after the Closing (the “Restricted Period”), the Shares may be offered and sold by the holder thereof only if such entity was not formed offer and sale is made in compliance with the terms of this Agreement and either: (A) if the offer or sale is within the United States or to or for the specific purpose account of acquiring a U.S. person (as such terms are defined in Regulation S), the Tokenssecurities are offered and sold pursuant to an effective registration statement or pursuant to Rule 144 under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act; or (B) the offer and sale is outside the United States and to other than a U.S. person;
(iv) As used herein, such entity is duly organizedthe term “United States” means and includes the United States of America, validly existing its territories and possessions, any State of the United States, and the District of Columbia, and the term “U.S. person” (as defined in good standing Regulation S) means:
A. a natural person resident in the United States;
B. any partnership or corporation organized or incorporated under the laws of the state United States;
C. any estate of its organizationwhich any executor or administrator is a U.S. person;
D. any trust of which any trustee is a U.S. person;
E. any agency or branch of a foreign entity located in the United States;
F. any nondiscretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;
G. any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated and (if an individual) resident in the consummation United States; and
H. a corporation or partnership organized under the laws of any foreign jurisdiction and formed by a U.S. person principally for the transactions contemplated hereby purpose of investing in securities not registered under the Securities Act, unless it is authorized byorganized or incorporated, and will owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not result in a violation of state law natural persons, estates or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; ortrusts.
Appears in 2 contracts
Samples: Subscription Agreement (Genesis Biopharma, Inc), Subscription Agreement (Genesis Biopharma, Inc)
Representations and Warranties of the Subscriber. The Subscriber To induce the Fund to accept this subscription, the Subscriber, on its own behalf, and if applicable, on behalf of others for whom it is hereby acknowledgesacting, represents and warrants as follows (which representations and warranties shall be true as of the Closing Time) and acknowledges that the Fund is relying on such representations and warranties in connection with the transactions contemplated herein:
(a) The Subscriber:
(i) is subscribing for the Units as principal for its own account or is deemed to be subscribing as principal; and
(ii) is a resident of one of the Designated Jurisdictions; and
(a) is an “accredited investor” as that term is defined in NI 45-106; and
(b) makes the representations and warranties set forth in the duly completed Schedule A - Accredited Investor Status Certificate (and, if applicable, Schedule A-1 – Form for Individual Accredited Investors) attached hereto and which forms an integral part hereof;
(b) The Subscriber is not a trust company or trust corporation registered under the laws of Xxxxxx Xxxxxx Island that is not registered under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada and where the Subscriber is not an individual, the Subscriber is not a person created or used solely to purchase or hold securities without a prospectus in reliance on a prospectus exemption.
(c) Save and except for the Offering Memorandum, the Subscriber has not received or been provided with a prospectus or other offering memorandum, within the meaning of the Securities Laws, or any sales or advertising literature in connection with the Offering, and the Subscriber’s decision to subscribe for the Units was not based upon, and the Subscriber has not received or relied upon, any verbal or written representations as to fact made by or on behalf of the Fund. The Subscriber’s decision to subscribe for the Units was based solely upon the terms of the Offering described herein, in the Offering Memorandum and information about the Fund which is publicly available (any such information having been obtained by the Subscriber without independent investigation or verification by the Fund).
(d) The Subscriber acknowledges that the Fund may complete additional financings in the future in order to fund the ongoing development of the Fund; that there is no assurance that such financings will be available and, if available, on terms acceptable to the Fund and that any such future financings may have a dilutive effect on current securityholders of the Fund, including the Subscriber.
(e) The Subscriber understands that the Units have not been qualified by prospectus under the Securities Laws, or the applicable securities laws of any other jurisdiction, nor is such qualification contemplated, and that the Units are being issued pursuant to exemptions from the prospectus requirements of the Securities Laws. The Subscriber understands that there will be restrictions on the transferability and resale of the Units and that a legend setting out the restrictions on the transferability and resale of the Units will be placed on all certificates evidencing the Units, subject to the requirements of the Securities Laws, any other applicable securities laws.
(f) The Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Units (including the possible loss of the Subscriber’s entire investment in the Units), is able to bear the risks of an investment in the Units and understands the risks of, and other considerations relating to, the subscription for Units.
(g) The Subscriber acknowledges and agrees that it has read and fully understands the Offering Memorandum. The Subscriber has consulted to the extent deemed appropriate by the Subscriber with the Subscriber's own advisers as to the financial, tax, legal and related matters concerning an investment in Units and on that basis believes that an investment in the Units is suitable and appropriate for the Subscriber. The Subscriber acknowledges and understands that the Fund’s counsel is acting as counsel to the Fund and not as counsel to the Subscriber.
(h) If the Subscriber is not a natural person, (i) the Subscriber has the legal capacity and authority to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units, and to perform its obligations thereunder and consummate the transactions contemplated thereby and when so executed and delivered will constitute valid and legally binding agreements of the Subscriber; (ii) in the case of a Subscriber that is a corporation, it is duly incorporated and validly subsisting under the laws of the jurisdiction of its incorporation; and (iii) any person signing this Subscription Agreement on behalf of the Subscriber has been duly authorized to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units. If the Subscriber is an individual, the Subscriber has all requisite legal capacity to acquire and hold the Units and to execute, deliver and comply with the terms of each of the documents required to be executed and delivered by the Subscriber in connection with this subscription for Units. The execution and delivery by the Subscriber, and compliance by the Subscriber with, this Subscription Agreement and each other document required to be executed and delivered by the Company Subscriber in connection with this subscription for Units does not conflict with, or constitute a default under, any instruments governing the Subscriber, any law, regulation or order, or any agreement to which the Subscriber is a party or by which the Subscriber is bound. This Subscription Agreement has been duly executed by the Subscriber and, when accepted by the Fund, will constitute a valid and legally binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.
(i) The Subscriber was offered the Units in the jurisdiction listed in and is resident at the Subscriber's permanent address set forth on page 1 of this Subscription Agreement and intends that the Securities Laws of that jurisdiction shall govern the Subscriber's subscription. Such address is a true and correct address of business or residence of the Subscriber.
(j) The subscription for the Units has not been made through or as a result of, and the distribution of the Units is not being accompanied by any advertisement, including without limitation in printed public media, radio, television or telecommunications, including electronic display, or as part of a general solicitation.
(k) None of the funds that the Subscriber is using to subscribe for Units are, to the knowledge of the Subscriber, proceeds obtained or derived, directly or indirectly, as a result of illegal activities. The funds which will be advanced by the Subscriber hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) and the Subscriber acknowledges that the Fund may in the future be required by law to disclose the Subscriber’s name and other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the knowledge of the Subscriber none of the funds to be provided by the Subscriber: (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States or any other jurisdiction; or (ii) are being tendered on behalf of a person or entity who has not been identified to the Subscriber. The Subscriber agrees that it shall promptly notify the Fund if the Subscriber discovers that any of such representations ceases to be true, and to provide the Fund with appropriate information in connection therewith.
(l) The representations, warranties and covenants contained in the applicable schedules will be true and correct both as of the date of execution of this Subscription Agreement and as of the Closing Time.
(m) No person has made any written or oral representations:
(i) that any person will resell or repurchase any of the Units, other than pursuant to the redemption right of the Units as described in the Offering Memorandum;
(ii) that any person will refund the Subscription Price or any portion of the Subscription Price; or
(iii) as to the future price or value of the Units.
(n) No securities commission, agency, governmental authority, regulatory body, stock exchange or other regulatory body has reviewed or passed on the investment merits of the Units nor have any such agencies or authorities made any recommendations or endorsement with respect to the Units.
(o) The Fund is relying on an exemption from the requirement to provide the Subscriber with a prospectus under Securities Laws and, as a consequence of acquiring the Units pursuant to such exemption:
(i) certain protections, rights and remedies provided by the Securities Laws, including statutory rights of rescission and certain statutory remedies against an issuer, underwriters, auditors, trustees and officers that are available to investors who acquire securities offered by a prospectus, will not be available to the Subscriber;
(ii) the common law may not provide investors with an adequate remedy in the event that they suffer investment losses in connection with securities acquired in a private placement;
(iii) the Subscriber may not receive information that would otherwise be required to be given under Securities Laws, and
(iv) the Fund is relieved from certain obligations that would otherwise apply under Securities Laws.
(p) If required by applicable Securities Laws or the Fund, the Subscriber shall execute, deliver and file or assist the Fund in filing such reports, undertakings and other documents with respect to the issue and/or sale of the Units as may be required by any securities commission, stock exchange or other regulatory authority.
(q) The Subscriber fully understands that: (i) the Fund is not, and currently has no intention of becoming, a reporting issuer under Securities Laws and as a result, the Units have an indefinite statutory hold period; and (ii) the Subscriber will be a minority holder of Units in a private entity.
(r) The Subscriber is arm’s length (within the meaning of Securities Laws) with the Fund and has not received, and does not expect to receive, any financial assistance from the Fund, directly or indirectly, in respect of the Subscriber’s purchase of Units.
(s) In connection with this Subscription Agreement the Manager and the Fund are collecting certain “personal information” as that term is defined in applicable privacy legislation. The Subscriber acknowledges and agrees that the Manager and the Fund shall only use and disclose such personal information for purposes consistent with the purposes for which it was initially collected without first obtaining consent from the Subscriber, such consent not to be unreasonably withheld. In addition to the foregoing, the Subscriber agrees and acknowledges that the Fund may use and disclose the Subscriber’s personal information as follows:
a. The Subscriber acknowledges and understands: (i) for internal use with respect to managing the contractual relationships and obligations between the Fund and the Subscriber;
(ii) for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to the Canada Revenue Agency;
(iii) disclosure to Securities Commissions and other regulatory bodies with jurisdiction with respect to reports of trades and similar regulatory filings;
(iv) disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;
(v) disclosure to professional advisers of the Fund in connection with the performance of their professional services;
(vi) disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with the prior written consent of the Subscriber;
(vii) disclosure to a court determining the rights of the parties under this Subscription Agreement; or
(viii) use and disclosure as otherwise required or permitted by law. The Subscriber further acknowledges that it has been notified by the Fund:
(i) of the delivery to the applicable securities regulatory authority or regulator of the Subscriber’s personal information (including full name, residential address and telephone number of the Subscriber, the number and type of securities purchased, the total purchase price, the exemption relied upon and the date of distribution); (ii) that the Tokens Subscriber’s personal information is being collected on behalf of the applicable securities regulatory authority or regulator under the authority granted to it in securities legislation; (iii) that the Subscriber’s personal information is being collected for the purposes of the administration and enforcement of the securities legislation of the applicable jurisdiction; and (iv) that public officials in the jurisdictions, as applicable, set out in Schedule B can be contacted regarding any questions about the applicable securities regulatory authority’s or regulator’s indirect collection of personal information.
(t) The Subscriber:
(i) is not a U.S. Person and it is not acquiring the Units for the account or benefit of, a non-discretionary account or similar account of a U.S. Person or for resale in the United States;
(ii) has not been offered pursuant the Units in the United States, this Subscription Agreement has not been signed in the United States, and the individuals making the order to purchase the Memorandum Units and executing and delivering this Subscription Agreement on the Subscriber’s behalf were not in the United States when the order was placed and when this Subscription Agreement was executed and delivered;
(iii) will not offer, sell or otherwise dispose of the Units in the United States or to a U.S. Person unless the Fund has consented to such offer, sale or distribution and such offer, sale or disposition is made in accordance with an exemption from the registration requirements under the U.S. Securities Act and all applicable U.S. Securities Laws or the U.S. Securities and Exchange Commission has declared effective a registration statement in respect of such securities; and
(iv) is aware that the Units have not been and will not be registered under the U.S. Securities Act or any state securities laws; (ii) Blue Sky Laws and that the offering and sale of Units may not be offered or sold, directly or indirectly, in the Tokens is intended to be exempt from United States without registration under the U.S. Securities Act, by virtue or any applicable Blue Sky Laws or compliance with requirements of Section 4(a)(2) thereof, based, in part, upon the representations, warranties an exemption from registration and agreements of the Subscriber contained in this Subscription Agreement; and (iii) acknowledges that the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted Fund has no present intention of filing a registration statement under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if under any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with applicable Blue Sky Laws in respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscribersecurities.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The By executing this Subscription Agreement, the Subscriber hereby acknowledges, represents and warrants toto the Corporation and acknowledges that the Corporation is relying thereon that:
(a) by reason of the Subscriber’s business and financial experience, it has such knowledge, sophistication and experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Common Shares and the terms of this Subscription Agreement;
(b) the Subscriber is an accredited investor (“Accredited Investor”) as such term is defined in both National Instrument 45-106 “Prospectus and Registration Exemptions” (“NI 45-106”) and in Rule 501(a) promulgated under the US Securities Act as indicated by the Subscriber on the certificates attached as Schedule “A” and Schedule “B” hereto;
(c) the Subscriber is subscribing for the Common Shares for its own account and not for the account or benefit of any other person, for investment purposes only, and agrees withnot with a view to resell or other distribution of the Common Shares in violation of NI 45-106, the Company as follows:US Securities Act or any state or provincial securities laws;
a. The (d) the Subscriber recognizes the speculative nature of this investment and is able to bear the economic risk that the Subscriber assumes;
(e) in making the decision to subscribe for the Common Shares the Subscriber has relied solely upon the information provided in this Subscription Agreement and the Subscriber’s own investigation of the Corporation, which investigation has provided the Subscriber with all the information the Subscriber considers necessary for purposes of its investment decision;
(f) the Subscriber has been advised to obtain and has either declined to or has obtained, at its own expense, appropriate professional advice regarding the investment, tax and legal consequences of subscribing for and an investment in the Common Shares contemplated hereunder;
(g) the Subscriber is aware of the applicable restrictions on the resale of the Common Shares imposed by securities legislation in the jurisdiction in which it resides and that the Subscriber may not be able to sell such Common Shares except in accordance with applicable securities legislation and regulatory policies for compliance with applicable resale restrictions;
(h) the Subscriber was contacted regarding the subscription for the Common Shares by the Corporation (or its authorized agents or representatives) with whom the Subscriber had a pre-existing relationship and no Common Shares were offered or sold to the Subscriber by means of any form of general solicitation, advertisement, article, notice or other communication published in a newspaper, magazine, internet website or similar media or broadcast over television or radio, or otherwise generally available;
(i) the Subscriber is resident in the jurisdiction set out in the “Subscriber’s Address” on the first page hereof, and the subscription for and issue to the Subscriber of the Common Shares, and all acts, solicitation, conduct and negotiation directly or indirectly in furtherance of this subscription has occurred only in that jurisdiction;
(j) the Subscriber was not formed for the purpose of subscribing for the Common Shares;
(k) the Subscriber acknowledges and understands: understands that no person has made any written or oral representation (i) that any person will resell or repurchase any or all of the Tokens offered pursuant Common Shares; or (ii) as to future price or value of the Memorandum Common Shares;
(l) the Subscriber is not a US Person (as defined in Regulation S under the US Securities Act, which definition includes, but is not limited to, an individual resident in the United States, an estate or trust of which any executor or administrator or trustee, respectively, is a US Person and any partnership or corporation organized or incorporated under the laws of the United States) and is not purchasing the Common Shares on behalf of, or for the account or benefit of, a person in the United States or a US Person;
(m) the Subscriber understands and acknowledges that the Common Shares have not been and will not be registered under the US Securities Act or any state securities laws; (ii) , and that the offering and sale of the Tokens is Common Shares are intended to be exempt from registration under the US Securities Act, by virtue Act pursuant to the provisions of Section 4(a)(2Rule 506 of Regulation D thereunder;
(n) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber consents to the placement of a legend on any certificate or other document evidencing the Common Shares to the effect that such securities have not been registered under the US Securities Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale thereof contained in this Subscription AgreementAgreement such legend to be substantially as follows: “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION UNDER THE ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS; and PROVIDED THAT IN THE CASE OF SUBPARAGRAPHS (iiiC) AND (D), THE CORPORATION HAS RECEIVED A WRITTEN OPINION OF LEGAL COUNSEL REASONABLY SATISFACTORY TO IT TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS.”
(o) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that consents to the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials placement of any kind regarding required legend under Canadian securities laws on any of certificate evidencing the Company’s investments provided Common Shares issued to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (ip) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed subscribe for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized byCommon Shares, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly and validly executed and delivered on behalf of such entity by the Subscriber and is constitutes a legal, valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms;
(q) if the Subscriber is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement account or other tax-exempt entity, it is authorized and qualified to invest in the Corporation and the person signing this Subscription Agreement on behalf of such entityentity has been duly authorized by such entity to do so;
(r) the Subscriber has not engaged, consented to or authorized any broker, finder or intermediary to act on its behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by this Subscription Agreement;
(s) the Subscriber understands and acknowledges that, except as otherwise set forth herein, the subscription hereunder is irrevocable by the Subscriber and except as permitted by law, the Subscriber is not entitled to cancel, terminate or revoke this Subscription Agreement; orand
(t) the entering into of this Subscription Agreement and the transactions contemplated hereby will not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which it is bound.
Appears in 2 contracts
Samples: Subscription Agreement (Counterpath Solutions, Inc.), Arrangement Agreement (Counterpath Solutions, Inc.)
Representations and Warranties of the Subscriber. 4.1 The Subscriber hereby acknowledges, represents represents, warrants and warrants tocovenants to and with the Issuer that, as at the date given above and at the Closing:
(a) no prospectus has been filed by the Issuer with any of the Commissions in connection with the issuance of the Securities, such issuance is exempted from the prospectus requirements of the Acts and that:
(i) the Subscriber is restricted from using most of the civil remedies available under the Acts;
(ii) the Subscriber may not receive information that would otherwise be required to be provided to him under the Acts; and
(iii) the Issuer is relieved from certain obligations that would otherwise apply under the Acts;
(b) the Subscriber certifies that it is resident in British Columbia, Alberta, Ontario or resident outside of Canada and the United States;
(c) the Subscriber is purchasing the Purchased Securities as principal for its own account and not for the benefit of any other person or is deemed under the Acts to be purchasing the Purchased Securities as principal, and agrees within either case is not purchasing the Purchased Securities with a view to the resale or distribution of all or any of the Securities;
(d) the Subscriber has received a copy of the Offering Memorandum and has duly completed, signed and delivered to the Issuer two Form 45-103.F3 Risk Acknowledgements in the form attached as Appendix II hereto;
(e) the Subscriber, if not a resident of British Columbia, certifies that it is not resident in British Columbia and acknowledges that:
(i) no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;
(ii) there is no government or other insurance covering the Securities;
(iii) there are risks associated with the purchase of the Securities;
(iv) there are restrictions on the Subscriber's ability to resell the Securities and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with them before selling the Securities; and
(v) the Issuer has advised the Subscriber that the Issuer is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Securities through a person registered to sell securities under the Acts and, as a consequence of acquiring the Securities pursuant to this exemption, certain protections, rights and remedies provided by the Act, including statutory rights of rescission or damages, will not be available to the Subscriber;
(f) if the Subscriber is a resident of Alberta, the Company as followsSubscriber is either:
a. The (i) an Eligible Investor under Multilateral Instrument 45-103; or
(ii) purchasing Purchased Securities having an aggregate acquisition cost which does not exceed $10,000;
(g) if the Subscriber acknowledges is a resident of Ontario or is otherwise subject to the Ontario Act, the Subscriber is an "accredited investor" as defined in Rule 45-501, by virtue of the fact that the Subscriber falls within one or more of the sub-paragraphs of the definition of "accredited investor" set out in Appendix III hereto (the Subscriber having initialled the applicable sub-paragraph(s);
(h) if the Subscriber is resident outside of Canada, the Subscriber:
(i) is knowledgeable of, or has been independently advised as to the applicable securities laws of the securities regulatory authorities (the "Authorities") having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the acquisition of the Securities, if any;
(ii) is purchasing the Purchased Securities pursuant to exemptions from the prospectus and understands: registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, the Subscriber is permitted to purchase the Purchased Securities under the applicable securities laws of the Authorities in the International Jurisdiction without the need to rely on any exemption; and
(iii) the applicable securities laws of the Authorities in the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Purchased Securities;
(i) to the best of the Subscriber's knowledge, the Units were not advertised;
(j) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; Securities;
(ii) that any person will refund the offering and sale purchase price of any of the Tokens is intended Securities;
(iii) as to be exempt from registration under the future price or value of any of the Securities; or
(iv) that any of the Securities Actwill be listed and posted for trading on a stock exchange or that application has been made to list and post the any of the Securities for trading on a stock exchange, other than the listing of the Shares and the Warrant Shares on the Exchange;
(k) the Subscriber is not a "control person" of the Issuer as defined in the Acts, will not become a "control person" by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements purchase of the Subscriber contained Purchased Securities, and does not intend to act in concert with any other person to form a control group of the Issuer;
(l) this Subscription Agreement; and subscription has not been solicited in any other manner contrary to the Acts or the 1933 Act;
(iiim) the Tokens are subject to restrictions on transferability and resale Subscriber acknowledges that the Securities have not been registered under the Securities 1933 Act or the securities laws of any state of the United States, and such securities must be held indefinitely and may not be transferred offered or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of sold unless subsequently registered under the Securities 1933 Act and applicable state the securities laws of all applicable states of the United States or an exemption from such registration requirements is available. It , and that the Issuer has no obligation or present intention of filing a registration statement under the 1933 Act in respect of the any of the Securities;
(n) the Purchased Securities are not being acquired directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States and the Subscriber does not have any agreement or understanding (either written or oral) with any U.S. Person of a person in the United States respecting:
(i) the transfer or assignment of any rights or interest in any of the Securities;
(ii) the division of profits, losses, fees, commissions, or any financial stake in connection with this subscription; or
(iii) the voting of the Shares or the Warrant Shares;
(o) the current structure of this transaction and all transactions and activities contemplated hereunder is not anticipated that there will be any market for resale a scheme to avoid the registration requirements of the Tokens, 1993 Act;
(p) it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons;
(q) the Subscriber acknowledges and such securities agrees that the offer to purchase the Purchased Securities was not made to the Subscriber when the Subscriber was in the United States and that:
(i) the Subscriber is not a U.S. Person;
(ii) the Subscriber is not and will not be freely transferable at purchasing the Purchased Securities for the account or benefit of any time.U.S. Person;
n. The (iii) the Subscriber has adequate means will not engage in any Directed Selling Efforts in respect of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity the Securities;
(iv) the Subscriber agrees not to engage in hedging transactions with regard to the Securities except in compliance with the 1933 Act; and
(v) the Issuer shall refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or pursuant to an available exemption from its investment in registration under the Tokens for an indefinite period of time.1933 Act;
o. The Subscriber: (ir) if a natural person, represents that the Subscriber has full power no knowledge of a "material fact" or "material change" (as those terms are defined in the Acts) in the affairs of the Issuer that has not been generally disclosed to the public, save knowledge of this particular transaction;
(s) the Subscriber's decision to tender this offer and authority purchase the Purchased Securities has not been made as a result of any verbal or written representation as to execute fact or otherwise made by or on behalf of the Issuer, or any other person and deliver is based entirely upon currently available public information concerning the Issuer and the information contained in this Subscription Agreement and all other related agreements the Offering Memorandum;
(t) the offer made by this subscription is irrevocable and requires acceptance by the Issuer and approval of the Exchange;
(u) the Issuer will have the right to accept this subscription offer in whole or certificates in part and the acceptance of this subscription offer will be conditional upon the sale of the Purchased Securities to the Subscriber being exempt from the prospectus requirements of the relevant securities legislation;
(v) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to carry out take all actions required pursuant hereto and, if an individual is of full age of majority, and if the provisions hereof and thereof; (ii) if Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity corporation it is duly organized, incorporated and validly existing and in good standing subsisting under the laws of its jurisdiction of incorporation, and all necessary approvals by its directors, shareholders and others have been given to authorize the state execution of its organization, this Agreement on behalf of the consummation Subscriber;
(w) the entering into of this Agreement and the transactions contemplated hereby is authorized by, and will not result in a the violation of state any of the terms and provisions of any law applicable to, or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensconstating documents of, the execution and delivery Subscriber or of any agreement, written or oral, to which the Subscriber may be a part or by which he is or may be bound;
(x) this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity by the Subscriber and is constitutes a legal, valid and binding obligation of the Subscriber enforceable against the Subscriber;
(y) the Subscriber has been independently advised as to the applicable hold periods imposed in respect of the Securities by applicable securities legislation and regulatory policies and confirms that no representations by the Issuer have been made respecting the hold periods applicable to the Securities and is aware of the risks and other characteristics of the Securities and of the fact that the Subscriber may not be able to resell the Securities purchased by it except in accordance with the applicable securities legislation and regulatory policies and that the Securities may be subject to resale restrictions and may bear a legend to this effect;
(z) the Subscriber, and any beneficial purchaser for whom the Subscriber is acting, is resident in the province or jurisdiction set out on the cover page of this Agreement;
(aa) if required by applicable securities legislation, policy or order or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Issuer in filing such entityreports, undertakings and other documents with respect to the issue of the Securities as may be required;
(bb) the Subscriber has not purchased the Purchased Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communication published in any newspaper, magazine or similar media or broadcast over radio, television or internet or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(cc) the Subscriber has been advised to consult its own legal advisors with respect to resale restrictions applicable to the Securities and the Subscriber is solely responsible (and the Issuer is not responsible) for compliance with applicable resale restrictions;
(dd) this Subscription Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Subscriber;
(ee) the Subscriber, or, where it is not purchasing as principal, each beneficial purchaser, has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and is able to bear the economic risk of loss of its investment;
(ff) the Subscriber, if a corporation, has previously filed with the Exchange a Form 4C, Corporate Placee Registration Form, and represents and warrants that there has been no change to any of the information in the Corporate Placee Registration Form previously filed with the Exchange up to the date of this Agreement, or will deliver a completed Form 4C, Corporate Placee Registration Form in the form attached hereto as Appendix I to the Issuer for filing with the Exchange in accordance with Section 8.2 hereof; orand
(gg) the Subscriber agrees that the above representations, warranties and covenants in this subsection will be true and correct both as of the execution of this subscription and as of the day of Closing.
4.2 The foregoing representations, warranties and covenants are made by the Subscriber with the intent that they be relied upon by the Issuer in determining its suitability as a purchaser of Units, and the Subscriber hereby agrees to indemnify the Issuer against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur as a result of reliance thereon. The Subscriber undertakes to notify the Issuer immediately of any change in any representation, warranty or other information relating to the Subscriber set forth herein which takes place prior to the Closing.
Appears in 2 contracts
Samples: Subscription Agreement (Amador Gold Corp), Subscription Agreement (Amador Gold Corp)
Representations and Warranties of the Subscriber. The Subscriber understands that this subscription is being conducted pursuant to exemptions from registration provided for in the Securities Act of 1933, as amended (the "Securities Act"), and state securities laws, that it is entering into this subscription agreement without being furnished any offering literature or prospectus, that this transaction has not been approved or disapproved by the Texas State Securities Board or the United States Securities and Exchange Commission or by any administrative agency charged with the administration of the securities laws of any state because of the nature of and the small number of persons solicited and the private aspects of the offering, that all documents, records and books pertaining to this investment have been made available to the undersigned and his representatives, including his attorney and/or his accountant, and that the books and records of the Company will be available upon reasonable notice for inspection by investors during reasonable business hours at its principal place of business, and the Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
a. (a) The Subscriber acknowledges and understands: confirms that (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state State of its organization, Texas; (ii) it has the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full corporate power and authority to execute execute, deliver and deliver perform this Subscription Agreement subscription agreement; (iii) it is able (A) to bear the economic risk of its investment, (B) to hold the Shares for an indefinite period of time; and all (C) to afford a complete loss of its investment, and (iv) it is currently a shareholder of the Company.
(b) The Subscriber confirms that it is an "accredited investor" as defined in Rule 501 under the Securities Act of 1933.
(c) The Subscriber confirms that, in making this subscription it has relied solely upon independent investigations made by its representative(s), including counsel and other related agreements or certificates advisors and that it and such representatives and advisors have been given the opportunity to ask questions of, and to carry out receive answers from, persons acting on behalf of the provisions hereof Company concerning the terms and thereof conditions of this subscription.
(d) The Subscriber accepts this subscription and the Shares issued hereunder solely for its own personal account, for investment purposes only, and the Shares are not being accepted with a view to or for the resale, distribution, subdivision or fractionalization thereof; the undersigned has no contract, undertaking, understanding, agreement or arrangement, formal or informal, with any person to sell, transfer or pledge to any person the Shares; the undersigned has no present plans to enter into any such contract, undertaking, agreement or arrangement; and the undersigned understands the legal consequences of the foregoing representations and warranties to mean that it must bear the economic risk of the investment for an indefinite period of time because the Shares have not been registered under the Securities Act and, therefore, cannot be sold unless they are subsequently registered under the Securities Act (which the Company is not obligated to do) or an exemption form such registration is available.
(e) The Subscriber understands that no federal or state agency has passed on or made any recommendation or endorsement of the Common Stock and that the Company is relying on the truth and accuracy of the representations, declarations and warranties herein made by the Subscriber in offering the Common Stock without having first registered the same under the Securities Act.
(f) The Subscriber confirms that it has been advised to consult with its own attorney regarding legal matters concerning the Company and to consult with independent tax advisors regarding the tax consequences of investing in the Company.
(g) The Subscriber has not authorized any broker, dealer, agent or finder to act on his behalf nor does the Subscriber have any knowledge of any broker, dealer, agent or finder purporting to act on its behalf with respect to this transaction.
(h) The Subscriber consents to the placement of a legend on the Shares and any other document evidencing its acceptance of the subscription, which legend shall be in form substantially as follows: "THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION UNDER THE ACT OR UNLESS COUNSEL TO THE COMPANY SHALL HAVE RENDERED AN OPINION SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED."
(i) The Subscriber represents and warrants that it has full legal right, power and authority to enter into this subscription agreement and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orShares.
Appears in 2 contracts
Samples: Subscription Agreement (Cinemark Mexico Usa Inc), Subscription Agreement (Cinemark Mexico Usa Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesSubscriber, except as set forth herein, represents and warrants to, and agrees with, to the Company Issuer with respect to the purchase of the Shares as follows:
a. 3.1 The Subscriber acknowledges and understands: is an "accredited investor", as defined in Regulation D promulgated under the Securities Act.
3.2 The Subscriber (i) has adequate means of providing for its current financial needs and possible contingencies, and has no need for liquidity of investment in the Issuer, (ii) can afford to hold unregistered securities for an indefinite period of time and sustain a complete loss of the entire amount of the subscription, and (iii) has not made an overall commitment to investments which are not readily marketable that is so disproportionate as to cause such overall commitment to become excessive.
3.3 The Subscriber agrees and understands that the Tokens Shares are being offered and sold to the Subscriber in reliance upon specific exemptions from the registration requirements of the Securities Act and the rules and regulations promulgated thereunder and that, in order to determine the availability of such exemptions and the eligibility of the Subscriber to acquire the Shares, the Issuer is relying upon the truth and accuracy of the Subscriber's representations and warranties, and compliance with the Subscriber's covenants and agreements, set forth in this Agreement. The Subscriber further agrees with the Issuer that (i) no Shares were offered or sold to the Subscriber by means of any form of general solicitation or general advertising, and in connection therewith, the Subscriber did not (1) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit or generally available; or (2) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or general advertising. The Subscriber hereby acknowledges that the offering of the Shares has not been reviewed by the SEC or any state regulatory authority since the offering of the Shares is intended to be exempt from the registration requirements of Section 5 of the Securities Act pursuant to Regulation D promulgated thereunder. The Subscriber understands that the Memorandum Shares have not been registered under the Securities Act and will agrees not be to sell or otherwise transfer the Shares unless they are registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens unless an exemption from such registration is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokensavailable.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested 3.4 The Shares are being purchased by the Subscriber or for its Advisorsown account, if anyfor investment purposes only, and understand not for the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree account of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment corporation and not with a view to distribution, assignment or resale or distribution thereof, to others in whole or in part. The Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the Shares. The Subscriber does not have any contract, undertaking, agreement or arrangement, formal or informal, arrangement with any person to sell sell, transfer, pledge, hypothecate, grant any option to purchase or transfer all or otherwise dispose of any part of the Tokens and the Shares.
3.5 The Subscriber has no plans been furnished with the Issuer's Annual Report on Form 10-K for the fiscal year ended December 31, 2001, as amended, and has had access to enter into any such agreement or arrangementthe Issuer's SEC filings and other public filings.
m. The Subscriber understands 3.6 With respect to corporate tax and agrees that it must bear the substantial other economic risks of its considerations involved in an investment in the Tokens and, correspondinglyShares, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It Subscriber is not anticipated that there will be any market for resale of relying on the Tokens, and such securities will not be freely transferable at any time.
n. Issuer. The Subscriber has adequate means carefully considered and has, to the extent the Subscriber believes such discussion necessary, discussed with its professional legal, tax, accounting and financial advisors the suitability of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its an investment in the Tokens Shares for an indefinite period of timeits particular tax and financial situation and has determined that the Shares are a suitable investment for the Subscriber.
o. 3.7 The Subscriber: (i) if a natural person, represents Issuer has made available to the Subscriber all documents and information that the Subscriber has full power and authority requested relating to execute and deliver an investment in the Shares.
3.8 Subject to the Issuer's disclosures in this Subscription Agreement and its SEC filings, the Subscriber recognizes that the Issuer has generated only limited revenues to date, is not expected to have any products commercially available for a number of years, if at all, and that investment in the Issuer involves substantial risks, including loss of the entire amount of such investment and has taken full cognizance of and understands all other related agreements or certificates and of the risk factors relating to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was purchase of the Shares.
3.9 The Subscriber has not been formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Shares.
3.10 This Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly when executed and delivered on behalf of such entity and is by the Subscriber will constitute a legal, valid and legally binding obligation of such entity; orthe Subscriber, enforceable in accordance with its terms, and subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.
Appears in 2 contracts
Samples: Common Stock Subscription Agreement (Axonyx Inc), Common Stock Subscription Agreement (Axonyx Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesrepresents, represents warrants and warrants tocovenants to the Issuer, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to Issuer is relying thereon, as at the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale date of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and at the documents annexed hereto or referenced herein (collectivelyClosing Date, that:
a. the Subscriber is resident in Ontario;
b. the Subscriber is aware of the characteristics of the Shares, the “Offering Documents”) risks relating to an investment therein and any other and all other documents requested by agrees that the Subscriber must bear the economic risk of his or its Advisors, if any, and understand her investment in the information contained thereinShares. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that he or she will not be able to resell the information regarding Digital Asset Securities was derived from publicly available sources that Shares until expiry of the Company believes to be reliableapplicable hold period under applicable securities laws in Canada except in accordance with limited exemptions and compliance with other requirements of applicable law, however and the Company has Subscriber (and not attempted to verify such information.the Issuer) is responsible for compliance with applicable resale restrictions or hold periods and will comply with all relevant securities laws in connection with any resale of the Shares;
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to if the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Companyindividual, the Subscriber has not relied upon any representation been created solely or other information (oral or written) primarily to use exemptions from the registration and prospectus exemptions under applicable securities laws and has a pre-existing purpose other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, use such exemptions;
d. if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization association or other entity, represents that such entity was not formed for the specific purpose of acquiring Subscriber has the Tokens, such entity is duly organized, validly existing legal capacity and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority competence to execute and deliver this Subscription Agreement and to take all other related agreements or certificates actions required pursuant hereto;
e. if an individual, the Subscriber has attained the age of majority and is legally competent to execute this Subscription Agreement and to carry out take all actions required pursuant hereto;
f. the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary actionand validly authorized, this Subscription Agreement has been duly executed and delivered by, and upon acceptance by the Issuer constitutes a legal, valid, binding and enforceable obligation of, the Subscriber;
g. other than the Offering Memorandum, the Subscriber has not received and has not been provided with documents that may be construed as an “offering memorandum” under applicable securities laws in Canada and that the decision to sign the Subscription Agreement and purchase the Shares has not been based upon any verbal or written representation as to fact or otherwise made by or on behalf of such entity the Issuer except as set forth in the Offering Memorandum. The Subscriber further acknowledges and is a legalagrees that the Subscriber has read and understood the Offering Memorandum and has had an opportunity to ask and have answered questions with respect to the Issuer and the proposed use of proceeds and the subscription hereby made;
h. no person has made any written or oral representation to the Subscriber that any person will re-sell or re-purchase the Shares, valid or refund any of the purchase price of the Shares, or that the Shares will be listed on any exchange or quoted on any quotation and binding obligation of such entity; ortrade reporting system, or that application has been or will be made
Appears in 2 contracts
Samples: Subscription Agreement, Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to PPO Units, the Memorandum shares of Common Stock, the Warrants and the shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the PPO Units, the shares of Common Stock, the Warrant or the Warrant Shares. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that no public market now exists, and there never will be a public market for, the PPO Units, that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information includes projections as to the future performance of the Company, which projections may not be realized, are based on assumptions which may not be correct and are subject to numerous factors beyond the Company’s control.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Subscriber hereunder shall have been taken, and this Agreement, assuming due execution by the parties hereto, constitutes a valid and legally binding obligation of the Subscriber, enforceable in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Shares in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) Subscriber is outside the United States when receiving and executing this Subscription Agreement; and
(ii) Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Shares; provided, however, that the Subscriber may sell or otherwise dispose of the Shares pursuant to registration of the Shares under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein.
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensShares prior to the expiration of a period of one year after the date of transfer of the Shares under this Subscription Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws.
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Shares prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act.
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Subscription Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Shares; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Shares. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Shares, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of investments of the kind contemplated by the Company, the Company’s investment results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that can result in substantial or, at times, even total losses.
i. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period PPO Units and could afford complete loss of timesuch investment.
o. j. The Subscriber: (i) if Subscriber is not subscribing for PPO Units as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
k. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 2 contracts
Samples: Subscription Agreement (Nevada Gold Holdings, Inc.), Subscription Agreement (Nevada Gold Holdings, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. (a) Subscriber is acquiring the Units for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act, and applicable state securities laws.
(b) The Subscriber acknowledges and understands: understands that (iA) that the Tokens offered pursuant to the Memorandum Units (1) have not been and will not be registered under the Securities Act or any state securities laws; , (2) will be issued in reliance upon an exemption from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) and/or Regulation D thereof and (3) will be issued in reliance upon exemptions from the registration and prospectus delivery requirements of state securities laws which relate to private offerings, and (B) the Subscriber must therefore bear the economic risk of such investment indefinitely unless a subsequent disposition thereof is registered under the Securities Act and applicable state securities laws or is exempt therefrom. Subscriber further understands that such exemptions depend upon, among other things, the bona fide nature of the investment intent of the Subscriber expressed herein. Pursuant to the foregoing, the Subscriber acknowledges that the certificates representing each of the Shares, the Warrants and the Exercise Shares shall bear a restrictive legend substantially as follows: "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER THE APPLICABLE SECURITIES LAWS OR (II) AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL ARE BOTH REASONABLY SATISFACTORY TO THE COMPANY, HAS BEEN DELIVERED TO THE COMPANY AND SUCH OPINION STATES THAT THE SECURITIES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION."
(c) The Subscriber has knowledge, skill and experience in financial, business and investment matters relating to an investment of this type and is capable of evaluating the merits and risks of such investment and protecting the Subscriber's interest in connection with the acquisition of the Units. The Subscriber understands that the acquisition of the Units is a speculative investment and involves substantial risks and that the Subscriber could lose the Subscriber's entire investment in the Units. To the extent deemed necessary by the Subscriber, the Subscriber has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of purchasing and owning the Share, the Warrants and the Exercise Shares. The Subscriber has the ability to bear the economic risks of the Subscriber's investment in the Company, including a complete loss of the investment, and the Subscriber has no need for liquidity in such investment.
(d) The Subscriber has been furnished by the Company all information (or provided access to all information) regarding the business and financial condition of the Company, its expected plans for future business activities, the attributes of the Securities and the merits and risks of an investment in the Securities which the Subscriber has requested or otherwise needs to evaluate the investment in the Company.
(e) Subscriber is in receipt of and has carefully read and understands the following items:
(i) Annual Report on Form 10-KSB and Form 10-KSB/A for the period ended June 30, 2005 filed by the Company with the SEC;
(ii) Quarterly Report on Form 10-QSB for the period ended March 31, 2006 filed by the Company with the SEC;
(iii) Current Reports on Form 8-K filed by the Company with the SEC on June 28, 2006;
(iv) Confidential Private Placement Memorandum, dated July 10, 2006 (together with the exhibits thereto, collectively, items (i) through (iv), the "Disclosure Documents").
(f) In making the proposed investment decision, the Subscriber is relying solely on investigations made by the Subscriber and the Subscriber's representatives. The Subscriber acknowledges that documents listed in Section 5(e) are the only information provided to the Subscriber by the Company and that the offering Subscriber is not relying on any other information in making the proposed investment decision. The offer to sell the Units was communicated to the Subscriber in such a manner that the Subscriber was able to ask questions of and sale receive answers from the management of the Tokens Company concerning the terms and conditions of the proposed transaction and that at no time was the Subscriber presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general or public advertising or solicitation.
(g) The Subscriber acknowledges that the Subscriber has been advised that:
(i) The Units, and the Securities that comprise the Units, offered hereby have not been approved or disapproved by the SEC or any state securities commission nor has the SEC or any state securities commission passed upon the accuracy or adequacy of any representations by the Company. Any representation to the contrary is intended a criminal offense.
(ii) In making an investment decision, the Subscriber must rely on its own examination of the Company and the terms of the Offering, including the merits and risks involved. The Units, and the Securities that comprise the Units, have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of any representation. Any representation to be exempt from registration the contrary is a criminal offense.
(iii) The Shares and the Warrants are and, when issued, the Exercise Shares will be, "Restricted Securities" within the meaning of Rule 144 under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws laws, pursuant to registration or an exemption from such registration is availabletherefrom. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means is aware that the Subscriber may be required to bear the financial risks of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its this investment in the Tokens for an indefinite period of time.
o. (h) The Subscriber: Subscriber acknowledges and is aware that there has never been any representation, guarantee or warranty made by the Company or any officer, director, employee or agent or representative of the Company, expressly or by implication, as to (i) if a natural person, represents the approximate or exact length of time that the Subscriber has full power and authority will be required to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofremain an owner of any Security; (ii) the percentage of profit and/or amount of or type of consideration, profit or loss to be realized, if any, as a corporation, partnershipresult of this investment; or (iii) that the limited past performance or experience on the part of the Company, or limited liability company any future expectations will in any way indicate the predictable results of the ownership of any Security or partnership, or association, joint stock company, trust, unincorporated organization or of the overall financial performance of the Company.
(i) The Subscriber agrees to furnish the Company such other entity, information as the Company may reasonably request in order to verify the accuracy of the information contained herein and agrees to notify the Company immediately of any material change in the information provided herein that occurs prior to the Company's acceptance of this Agreement.
(j) The Subscriber further represents and warrants that such entity was not formed for the specific purpose Subscriber is an "accredited investor" within the meaning of acquiring the Tokens, such entity is duly organized, validly existing and in good standing Rule 501 of Regulation D under the laws Securities Act, and Subscriber has executed the Certificate of Accredited Investor Status, attached hereto as Exhibit B.
(k) As of the state date of this Agreement the Subscriber and its organizationaffiliates do not have, and during the 30-day period prior to the date of this Agreement the Subscriber and its affiliates have not entered into, any "put equivalent position" as such term is defined in Rule 16a-1 under the Exchange Act or short sale positions with respect to the Common Stock of the Company. Until the registration statement referred to in Section 4(c) is declared effective, the consummation of the transactions contemplated Subscriber hereby is authorized byagrees not to, and will cause its affiliates not result to, enter into any such "put equivalent position" or short sale position. The foregoing representations and warranties and undertakings are made by the Subscriber with the intent that they be relied upon in a violation determining its suitability as an investor and the Subscriber hereby agrees that such representations and warranties shall survive its purchase of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orUnits.
Appears in 2 contracts
Samples: Subscription and Registration Rights Agreement (Cubic Energy Inc), Subscription and Registration Rights Agreement (Cubic Energy Inc)
Representations and Warranties of the Subscriber. The By subscribing to the Offering, the Subscriber (and, if the Subscriber is purchasing the Shares subscribed for hereby acknowledgesin a fiduciary capacity, the person or persons for whom the Subscriber is so purchasing) represents and warrants toto the Company, which representations and agrees withwarranties are true and complete in all material respects, as of the Company as followsdate of each Closing:
a. (a) The Subscriber has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Agreement and to carry out the provisions thereof. All actions on the Subscriber’s part required for the lawful subscription to the Offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Agreement will be a valid and binding obligation of the Subscriber, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.
(b) The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any public availability of the Company’s investments provided to current Offering Circular, which can be viewed on the Subscriber by SEC Exxxx Database under the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber filed number . This Offering Circular is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with made available in the Company’s stated objectives.
e. The Subscriber acknowledges most recent qualified offering statement on SEC Form 1-A, as amended, deemed qualified on _______________, 2021. In the Company’s Offering Circular, it makes clear the terms and understands that neither the SEC nor any state securities commission has approved or disapproved conditions of the Offering or passed upon or endorsed and the merits risks associated therewith are described. The Subscriber has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Tokens or Company and has had the Offering.
f. opportunity to review the Company’s operations and facilities. The Subscriber and its Advisors, if any, have has also had a reasonable the opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerningand its management regarding the terms and conditions of this investment. The Subscriber acknowledges that except as set forth herein, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions no representations or warranties have been answered made to the full satisfaction of the Subscriber and its AdvisorsSubscriber, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation advisors or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if anyrepresentative, by the Company in writingor others with respect to the business or prospects of the Company or its financial condition.
i. (c) The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters to be capable of utilizing the such information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Shares, and to make an informed decision relating thereto. Alternatively, the Subscriber has obtained, utilized the services of a purchaser representative and together they have sufficient experience in the Subscriber’s judgment, sufficient financial and business matters that they are capable of utilizing such information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such the Subscriber’s investment in the Shares, and to make an informed investment decision with respect relating thereto. The Subscriber has evaluated the risks of investing an investment in the TokensShares, is able to bear such risks, including those described in the section of the Offering Circular entitled “Risk Factors,” and has determined that the Tokens are a investment is suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part adequate financial resources for an investment of this character. The Subscriber could bear a complete loss of the Tokens and Subscriber’s investment in the Subscriber has no plans to enter into any such agreement or arrangementCompany.
m. (d) The Subscriber understands that the Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and agrees that it must bear reliance on such exemption is predicated in part on the substantial economic risks truth and accuracy of its investment the Subscriber’s representations and warranties, and those of the other purchasers of the Shares in the Tokens andOffering. The Subscriber further understands that the Shares are only being registered under the securities laws of certain states, correspondinglybut not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state, since the business objectives Shares are “covered securities” under the National Securities Market Improvement Act of the Company1996. The Subscriber covenants not to sell, indefinitely because the Tokens may not be sold, hypothecated transfer or otherwise disposed dispose of any Shares unless subsequently such Shares have been registered under the Securities Act and under applicable state securities laws laws, or an exemption exemptions from such registration is requirements are available. It is not anticipated .
(e) The Subscriber acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will be ever exist. The Company has no obligation to list any of the Shares on any market for or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Tokens, Shares. The Subscriber must bear the economic risk of this investment indefinitely and such securities will not be freely transferable at any timethe Subscriber acknowledges that the Subscriber is able to bear the economic risk of losing the Subscriber’s entire investment in the Shares.
n. (f) The Subscriber has adequate means represents that either: (i) the Subscriber is an “accredited investor” within the meaning of providing Rule 501 of Regulation D under the Securities Act; or (ii) the Purchase Price, together with any other amounts previously used to purchase Shares in the Offering, does not exceed ten percent (10%) of the greater of the Subscriber’s annual income or net worth (or in the case where the Subscriber is a non-natural person, their revenue or net assets for such Subscriber’s current financial needs and foreseeable contingencies and most recently completed fiscal year end). The Subscriber represents that to the extent it has no need for liquidity from any questions with respect to its status as an accredited investor, or the application of the investment in the Tokens for an indefinite period of timelimits, it has sought professional advice.
o. The Subscriber: (ig) if Within five (5) days after receipt of a natural personrequest from the Company, represents that the Subscriber has full power hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and authority to execute and deliver this Subscription Agreement such documents as may reasonably be necessary to comply with any and all other related agreements laws and regulations to which the Company is or certificates may become subject, including, without limitation, the need to determine the accredited investor status of the Company’s stockholders.
(h) The Subscriber acknowledges that the Per Share Unit Price of the Shares to be sold in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to carry out value. The Subscriber further acknowledges that future offerings of securities of the provisions hereof Company may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.
(i) The Subscriber maintains the Subscriber’s domicile (and thereof; is not a transient or temporary resident) at the address provided with the Subscriber’s subscription.
(j) If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Subscriber’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.
(k) If the Subscriber is purchasing the Shares in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or any other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is Subscriber has been duly organized, validly existing authorized and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority empowered to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out subscription documents. Upon request of the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution Subscriber will provide true, complete and delivery current copies of this Subscription Agreement has been duly authorized by all necessary actionrelevant documents creating the Subscriber, this Subscription Agreement has been duly executed and delivered on behalf authorizing its investment in the Company and/or evidencing the satisfaction of such entity and is a legal, valid and binding obligation of such entity; orthe foregoing.
Appears in 2 contracts
Samples: Subscription Agreement (Relay Management LLC), Subscription Agreement (Relay Management LLC)
Representations and Warranties of the Subscriber. 4.1 The Subscriber hereby acknowledges, represents represents, warrants and warrants tocovenants to and with the Issuer that, as at the date given above and agrees with, at the Company as followsClosing:
a. The Subscriber acknowledges (a) no prospectus has been filed by the Issuer with any of the Commissions in connection with the issuance of the Securities, such issuance is exempted from the prospectus requirements of the Acts and understands: that:
(i) that the Tokens offered pursuant to Subscriber is restricted from using most of the Memorandum have not been and will not be registered civil remedies available under the Securities Act or any state securities laws; Acts;
(ii) the Subscriber may not receive information that the offering and sale of the Tokens is intended would otherwise be required to be exempt from registration provided to him under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementActs; and and
(iii) the Tokens are subject to restrictions on transferability and resale Issuer is relieved from certain obligations that would otherwise apply under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of Acts;
(b) the Subscriber certifies that it is resident in British Columbia or receiver Alberta or resident outside of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber Canada and the United States;
(c) the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any :
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”i) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s Purchased Securities as principal for its own assessment account and knowledge not for the benefit of the Company, its management, crypto-currencies and any other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of is deemed under the Company concerning, among other related matters, Acts to be purchasing the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than Purchased Securities as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risksprincipal, and has determined that in either case is purchasing the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account Purchased Securities for investment only and not with a view to the resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer of all or any part of the Tokens Purchased Securities; or
(ii) is purchasing as agent for a disclosed principal and is not deemed under the Subscriber has no plans Acts to be purchasing the Purchased Securities as principal, and it is duly authorized to enter into this Agreement and to execute and deliver all documentation in connection with the purchase on behalf of such disclosed principal, who is purchasing as principal for its own account and not for the benefit of any such agreement other person and for investment only and not with a view to the resale or arrangement.distribution of all or any of the Purchased Securities;
m. The Subscriber understands and agrees (d) the Subscriber, if not a resident of British Columbia, certifies that it must bear is not resident in British Columbia and acknowledges that:
(i) no securities commission or similar regulatory authority has reviewed or passed on the substantial economic merits of the Securities;
(ii) there is no government or other insurance covering the Securities;
(iii) there are risks associated with the purchase of its investment the Securities;
(iv) there are restrictions on the Subscriber's ability to resell the Securities and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with them before selling the Securities; and
(v) the Issuer has advised the Subscriber that the Issuer is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Securities through a person registered to sell securities under the Acts and, as a consequence of acquiring the Securities pursuant to this exemption, certain protections, rights and remedies provided by the Act, including statutory rights of rescission or damages, will not be available to the Subscriber;
(e) if the Subscriber is resident outside of Canada and the United States, the Subscriber:
(i) is knowledgeable of, or has been independently advised as to the applicable securities laws of the securities regulatory authorities (the "Authorities") having application in the Tokens andjurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the acquisition of the Securities, correspondinglyif any;
(ii) is purchasing the Purchased Securities pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, the business objectives Subscriber is permitted to purchase the Purchased Securities under the applicable securities laws of the CompanyAuthorities in the International Jurisdiction without the need to rely on any exemption; and
(iii) the applicable securities laws of the Authorities in the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Purchased Securities;
(f) to the best of the Subscriber's knowledge, the Units were not advertised;
(g) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Securities;
(ii) that any person will refund the purchase price of any of the Securities;
(iii) as to the future price or value of any of the Securities; or
(iv) that any of the Securities will be listed and posted for trading on a stock exchange or that application has been made to list and post the any of the Securities for trading on a stock exchange, other than the listing of the Shares and the Warrant Shares on the Exchange;
(h) the Subscriber is not a "control person" of the Issuer as defined in the Acts, will not become a "control person" by virtue of the purchase of the Purchased Securities, and does not intend to act in concert with any other person to form a control group of the Issuer;
(i) this subscription has not been solicited in any other manner contrary to the Acts or the 1933 Act;
(j) the Subscriber acknowledges that the Securities have not been registered under the 1933 Act or the securities laws of any state of the United States, and such securities must be held indefinitely because the Tokens and may not be sold, hypothecated offered or otherwise disposed of sold unless subsequently registered under the Securities 1933 Act and applicable state the securities laws of all applicable states of the United States or an exemption from such registration requirements is available. It , and that the Issuer has no obligation or present intention of filing a registration statement under the 1933 Act in respect of the any of the Securities;
(k) the Purchased Securities are not being acquired directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States and the Subscriber does not have any agreement or understanding (either written or oral) with any U.S. Person of a person in the United States respecting:
(i) the transfer or assignment of any rights or interest in any of the Securities;
(ii) the division of profits, losses, fees, commissions, or any financial stake in connection with this subscription; or
(iii) the voting of the Shares or the Warrant Shares;
(l) the current structure of this transaction and all transactions and activities contemplated hereunder is not anticipated that there will be any market for resale a scheme to avoid the registration requirements of the Tokens, 1933 Act;
(m) it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons;
(n) the Subscriber acknowledges and such securities agrees that the offer to purchase the Purchased Securities was not made to the Subscriber when the Subscriber was in the United States and that:
(i) the Subscriber is not a U.S. Person;
(ii) the Subscriber is not and will not be freely transferable at purchasing the Purchased Securities for the account or benefit of any time.U.S. Person;
n. The (iii) the Subscriber has adequate means will not engage in any Directed Selling Efforts in respect of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity the Securities;
(iv) the Subscriber agrees not to engage in hedging transactions with regard to the Securities except in compliance with the 1933 Act; and
(v) the Issuer shall refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or pursuant to an available exemption from its investment in registration under the Tokens for an indefinite period of time.1933 Act;
o. The Subscriber: (io) if a natural person, represents that the Subscriber has full power no knowledge of a "material fact" or "material change" (as those terms are defined in the Acts) in the affairs of the Issuer that has not been generally disclosed to the public, save knowledge of this particular transaction;
(p) the Subscriber's decision to tender this offer and authority purchase the Purchased Securities has not been made as a result of any verbal or written representation as to fact or otherwise made by or on behalf of the Issuer, or any other person and is based entirely upon currently available public information concerning the Issuer and the information contained in this Agreement;
(q) the offer made by this subscription is irrevocable and requires acceptance by the Issuer and approval of the Exchange;
(r) the Issuer will have the right to accept this subscription offer in whole or in part and the acceptance of this subscription offer will be conditional upon the sale of the Purchased Securities to the Subscriber being exempt from the prospectus requirements of the relevant securities legislation;
(s) the Subscriber has the legal capacity and competence to enter into and execute and deliver this Subscription Agreement and to take all other related agreements or certificates actions required pursuant hereto and, if an individual is of full age of majority, and to carry out if the provisions hereof and thereof; (ii) if Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity corporation it is duly organized, incorporated and validly existing and in good standing subsisting under the laws of its jurisdiction of incorporation, and all necessary approvals by its directors, shareholders and others have been given to authorize the state execution of its organization, this Agreement on behalf of the consummation Subscriber;
(t) the entering into of this Agreement and the transactions contemplated hereby is authorized by, and will not result in a the violation of state any of the terms and provisions of any law applicable to, or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensconstating documents of, the execution and delivery Subscriber or of any agreement, written or oral, to which the Subscriber may be a part or by which he is or may be bound;
(u) this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity by the Subscriber and is constitutes a legal, valid and binding obligation of the Subscriber enforceable against the Subscriber;
(v) the Subscriber has been independently advised as to the applicable hold periods imposed in respect of the Securities by applicable securities legislation and regulatory policies and confirms that no representations by the Issuer have been made respecting the hold periods applicable to the Securities and is aware of the risks and other characteristics of the Securities and of the fact that the Subscriber may not be able to resell the Securities purchased by it except in accordance with the applicable securities legislation and regulatory policies and that the Securities may be subject to resale restrictions and may bear a legend to this effect;
(w) the Subscriber, and any beneficial purchaser for whom the Subscriber is acting, is resident in the province or jurisdiction set out on the cover page of this Agreement;
(x) if required by applicable securities legislation, policy or order or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Issuer in filing such entityreports, undertakings and other documents with respect to the issue of the Securities as may be required;
(y) the Subscriber has not purchased the Purchased Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communication published in any newspaper, magazine or similar media or broadcast over radio, television or internet or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(z) the Subscriber has been advised to consult its own legal advisors with respect to resale restrictions applicable to the Securities and the Subscriber is solely responsible (and the Issuer is not responsible) for compliance with applicable resale restrictions;
(aa) this Subscription Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Subscriber;
(bb) the Subscriber, or, where it is not purchasing as principal, each beneficial purchaser, has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and is able to bear the economic risk of loss of its investment; orand
(cc) the Subscriber agrees that the above representations, warranties and covenants in this subsection will be true and correct both as of the execution of this subscription and as of the day of Closing.
4.2 The foregoing representations, warranties and covenants will survive the Closing and are made by the Subscriber with the intent that they be relied upon by the Issuer in determining its suitability as a purchaser of Units, and the Subscriber hereby agrees to indemnify the Issuer against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur as a result of reliance thereon. The Subscriber undertakes to notify the Issuer immediately of any change in any representation, warranty or other information relating to the Subscriber set forth herein which takes place prior to the Closing.
Appears in 2 contracts
Samples: Subscription Agreement (Amador Gold Corp), Subscription Agreement (Amador Gold Corp)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company, and agrees withas of the Effective Date, the Company as follows:
a. The (a) the Subscriber acknowledges is an "Accredited Investor" as such term is defined in Rule 501 of Regulation D, and understandsis familiar with the character, integrity and business acumen of the principals of the Company;
(b) the Subscriber: (iA) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreementinvestment; and (iiiB) is able to bear the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the CompanyShares and the Warrants (collectively, the Subscriber has not relied upon any representation or other information (oral or written"Securities") other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time., and could afford to lose the entire amount of such investment;
o. The Subscriber(c) the Subscriber understands and acknowledges that a purchaser of the Securities must be prepared to bear the economic risk of such investment for an indefinite period because of: (A) the heightened nature of the risks associated with an investment in the Company due to its status as a development stage company; (B) illiquidity of the Securities due to the fact that the Securities have not been registered under the Securities Act of 1933, as amended, or any of the rules and regulations promulgated thereunder (collectively, the "Act") or any state securities act (nor passed upon by the SEC or any state securities commission), and the Securities have not been registered or qualified by the Subscriber under federal or state securities laws solely in reliance upon an available exemption from such registration or qualification, and hence such Securities cannot be sold unless they are subsequently so registered or qualified, or are otherwise subject to any applicable exemption from such registration requirements; and (C) substantial restrictions on the transfer of the Securities, as set forth in, among other documents, this Agreement and the Warrant Certificate, and by legend on the face or reverse side of every certificate evidencing the ownership of any Securities;
(d) the Subscriber understands and acknowledges that an investment in the Securities is speculative in nature, and involves certain risks;
(e) the Subscriber is not a member of the National Association of Securities Dealers, or of any other self-regulatory agency which would require approval prior to any purchase of the Securities;
(f) the Subscriber is acquiring the Securities for its own investment, and not with a view toward the subdivision, resale, distribution, or fractionalization thereof; the Subscriber has no contract, undertaking, arrangement or obligation with or to any person to sell, transfer, or otherwise dispose of the Securities (or any portion thereof hereby subscribed for), and has no present intention to enter into any such contract, undertaking, agreement or arrangement;
(g) the offering of Securities was made only through direct, personal communication between the Subscriber (or a representative thereof) and the Company; the subscription for Securities by the Subscriber is not the result of any form of general solicitation or general advertising including, but not limited to, the following: (i) if a natural personany advertisement, represents that article, notice or other communication published in any newspaper, magazine, or other written communication, or broadcast over television, radio or any other medium; or (ii) any seminar or meeting to which the attendees had been invited by any general solicitation or general advertising;
(h) the Subscriber has full power been advised to consult with an attorney regarding legal matters concerning the purchase and authority to execute ownership of the Securities, and deliver this Subscription Agreement and all other related agreements or certificates and to carry out with a tax advisor regarding the provisions hereof and thereof; tax consequences of purchasing such Securities;
(iii) if the Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity corporation which was not formed organized for the specific purpose of acquiring the TokensSecurities and has other investments or business activities besides investing in the Company; and
(j) this Agreement, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly once executed and delivered on behalf of such entity and is a legalto the Company by the Subscriber, constitutes the valid and legally binding obligation of the Subscriber, enforceable against such entity; orSubscriber in accordance with its terms.
Appears in 2 contracts
Samples: Debt Conversion Agreement (Hienergy Technologies Inc), Debt Conversion Agreement (Hienergy Technologies Inc)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees with, warranties will survive the Company as followsClosing) that:
a. The (a) the Subscriber acknowledges and understands: is resident in the jurisdiction set out on page ii of this Agreement;
(b) if the Subscriber is resident outside of the U.S. or Canada:
(i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Common Shares,
(ii) the Subscriber is intended acquiring the Common Shares pursuant to be exempt exemptions from registration prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to acquire the Common Shares under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements applicable laws of the Subscriber contained in this Subscription Agreement; and International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction applicable laws of the Subscriber authorities in the International Jurisdiction do not require the Issuer to make any filings or receiver seek any approvals of any kind from any securities regulator in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Tokens.Common Shares,
b. Prior to (iv) the execution acquisition of this Subscription Agreement, the Common Shares by the Subscriber does not trigger:
(A) any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase, in the Subscriber’s attorneyInternational Jurisdiction, accountantor
(B) any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, purchaser representative and/or tax advisorand
(v) the Subscriber will, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv), above, to the satisfaction of the Issuer, acting reasonably;
(c) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(d) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(e) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and enforceable against the Subscriber in accordance with its Advisors, if any.terms;
g. The (f) the Subscriber has not reproducedreceived and carefully read this Agreement;
(g) the Subscriber acknowledges receipt of a copy of the unanimous shareholder agreement of the Issuer and acknowledges that it is a condition of becoming a shareholder of the Issuer that the Subscriber must become a party to such unanimous shareholder agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, duplicated or delivered this Subscription Agreement including the Offering Documents or other related documents or information to any other person, except to possible loss of the Subscriber’s Advisors, if any.entire investment;
h. In evaluating (i) the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Common Shares and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber's decision to invest in the Common Shares and the Issuer;
(j) the Subscriber has is not relied upon an underwriter of, or dealer in, any representation of the Common Shares, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Common Shares;
(k) the Subscriber is not aware of any advertisement of any of the Common Shares and is not acquiring the Common Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other information communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(l) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or writtenrepurchase any of the Common Shares,
(ii) that any person will refund the purchase price of any of the Common Shares, or
(iii) as to the future price or value of any of the Common Shares; and
(m) other than as stated provided in the Offering Documents or term sheet attached as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating Exhibit “B” to this Subscription Agreement Agreement, there is no person acting or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available purporting to it act in connection with the Offering who is entitled to evaluate any brokerage or finder's fee payable by the merits Issuer. If any person establishes a claim that any fee or other compensation is payable by the Issuer in connection with this subscription for the Common Shares, the Subscriber or any beneficial purchaser for whom the undersigned is acting covenants to indemnify and risks of hold harmless the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision Issuer with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, thereto and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment all costs reasonably incurred in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if anydefence thereof.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 2 contracts
Samples: Private Placement Subscription Agreement (McEwen Mining Inc.), Private Placement Subscription Agreement (McEwen Mining Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
a. The Subscriber acknowledges and understands: understands (i) that the Tokens Securities are being offered pursuant to the Memorandum have not been and will not be registered sold under an exemption from registration under the Act and the Texas Securities Act of 1957, as amended (the "Texas Securities Act") or any state securities laws; the Rules and Regulations promulgated thereunder, (ii) that this transaction has not been scrutinized by the offering Securities and sale Exchange Commission or by any agency charged with the administration of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements securities laws of the Subscriber contained in this Subscription Agreement; and State of Texas or any other State or jurisdiction, (iii) the Tokens are subject that all documents, records, books and other information pertaining to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior this investment have been made available to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney's representatives, accountantincluding the Subscriber's attorneys, accountants and purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisorsrepresentative, if any, and understand (iv) that the information contained thereinbooks and records of the Company will be available upon reasonable notice for inspection by investors during reasonable business hours at the address of the Company set forth above. The Subscriber hereby represents and warrants as follows:
(a) This Agreement is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial valid and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks legally binding obligation of the Subscriber’s investment , enforceable in the Tokens accordance with its terms except as affected by (i) bankruptcy law and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens(ii) equitable principles, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.full power and authority to enter in this Agreement;
l. (b) The Subscriber is acquiring an "accredited investor" within the Tokens solely for Subscriber’s own account for investment and not with a view meaning of Rule 501(a) of Regulation D under the Act, as represented by the Subscriber in the Accredited Investor Questionnaire delivered by the Subscriber pursuant to resale or distribution thereof, in whole or in part. Section 1;
(c) The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part is a resident of the Tokens and State of Texas;
(d) This investment pursuant to the Subscriber has no plans to enter into any such agreement Subscription does not exceed twenty percent (20%) of the Subscriber's net worth (or arrangement.joint net worth with the Subscriber's spouse);
m. (e) The Subscriber understands and agrees that it must is able (i) to bear the substantial economic risks risk of its investment in the Tokens andthis investment, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under (ii) to hold the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokensindefinitely, and such securities will not be freely transferable (iii) at any time.present, to afford a complete loss of this investment;
n. (f) The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable personal contingencies and has no need for liquidity from its in this investment;
(g) The Subscriber or the Subscriber's purchaser representative, if any, has knowledge of finance, securities and investments generally, and has the experience and skill necessary to evaluate the merits and risks of this investment and make an informed investment decision;
(h) The Subscriber has received and reviewed such information concerning (i) the Company, (ii) the operations and financial condition of the Company and (iii) the Securities, as the Subscriber deems necessary or desirable for the investment decision required in connection with this Subscription;
(i) The Subscriber, in making the Tokens decision to purchase the Securities, has relied solely upon independent investigations made by the Subscriber or the Subscriber's purchaser representative, if any, or other representatives of the Subscriber, including professional tax and other advisors, and the Subscriber and such representatives and advisors have been given the opportunity to ask questions of, and to receive answers from, persons acting on behalf of the Company concerning the terms and conditions of this offering, and to obtain any additional information, to the extent such persons possess such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of the information provided to the Subscriber or such representatives of the Subscriber;
(j) The Securities hereby subscribed are being acquired by the Subscriber in good faith solely for the Subscriber's own account, for investment purposes only, and are not and will not be acquired for resale, resyndication, distribution, subdivision or fractionalization thereof; the Subscriber has no contract or arrangement with any person to sell, pledge, hypothecate or otherwise transfer to any person the Securities or any part thereof; the Subscriber has no present plans to enter into any such contract or arrangement; and the Subscriber understands that as a result the Subscriber must bear the economic risk of the investment for an indefinite period of time.time because the Securities have not been registered under the Act or the securities laws of any State or other jurisdiction and, therefore, cannot be sold, pledged, hypothecated or otherwise transferred unless they are subsequently registered under the Act and other applicable securities laws (which the Company is not obligated to do, and has no present intention of doing) or unless an exemption from such registration is available;
o. (k) The Subscriber understands that no federal or state agency has passed on or made any recommendation or endorsement of the Securities and that the Company is relying on the truth and accuracy of the representations, warranties, covenants, acknowledgments and agreements herein made by the Subscriber in offering the Securities for sale to the Subscriber without having first registered the same under the Act or any other applicable securities laws;
(l) The funds provided by the Subscriber for this investment are either separate property of the Subscriber: (i) if a natural person, represents that community property over which the Subscriber has full power and authority the right of control or are otherwise funds as to execute and deliver this Subscription Agreement and all other related agreements or certificates and which the Subscriber has the sole right of management; and
(m) The Subscriber understands that the Securities are subject to carry out the provisions hereof and thereof; limitations set forth in paragraph (ii2)-(4) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for of Section 109.13(j) of the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing Regulations promulgated under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orTexas Securities Act.
Appears in 2 contracts
Samples: Subscription Agreement (Ashford Hospitality Trust Inc), Subscription Agreement (Ashford Hospitality Trust Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as followswarrants:
a. The Subscriber acknowledges and understands: (ia) that the Tokens offered pursuant to the Memorandum have not been and will not be registered Subscriber is an “accredited investor” (as defined in Regulation D promulgated under the Securities Act or any state securities laws; of 1933, as amended (iithe “Act”);
(b) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorneyrepresentative has had access to the same kind of information concerning the Company that is required by Schedule A of the Act, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed to the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes extent that the Company has a limited financial and operating history and possesses such information;
(c) that the Company’s proposed investments in Digital Asset Securities involve Subscriber has received a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any copy of the Company’s investments provided to Registration Statement on Form S-1, dated [·], 2014, and such other information as the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of may have requested from the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.;
e. The Subscriber acknowledges and understands (d) that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber it is capable of utilizing the information made that is available to it in connection with concerning the Offering Company to evaluate the merits and risks of investment in the Company including the risk that it could lose its entire investment in the Company;
(e) that the Subscriber understands that the Shares have not been registered under the Act, the securities laws of any state or the securities laws of any other jurisdiction, and that the Shares must be held indefinitely, are subject to restrictions on sale and Transfer (as defined below) and any sale or Transfer permitted under the terms of this Agreement must be registered under the Act and such other securities laws unless an exemption from registration under the Act and such other securities laws covering the sale or Transfer of the Shares is available;
(f) that the Shares are being purchased by the Subscriber for the Subscriber’s investment in the Tokens own sole benefit and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to to, or for resale in connection with, a public offering or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and ;
(g) that the Subscriber has no plans understands that the certificate or certificates representing the Shares (if certificated) may be impressed with a legend stating that the Shares are subject to enter into any such agreement or arrangement.
m. The Subscriber understands restrictions on sale and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may Transfer and have not be sold, hypothecated or otherwise disposed of unless subsequently been registered under the Securities Act and applicable or any state securities laws and setting out or an exemption from such registration is available. It is not anticipated that there will be any market for referring to the restrictions on the Transferability and resale of the Tokens, and such securities will not be freely transferable at any time.Shares; and
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (ih) if a natural person, represents that the Subscriber has full power and authority understands that stop Transfer instructions in respect of the Shares may be issued to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporationany Transfer agent, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization Transfer clerk or other entity, represents that such entity was not formed agent at any time acting for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 2 contracts
Samples: Class C Common Stock Subscription Agreement (Virtu Financial, Inc.), Class D Common Stock Subscription Agreement (Virtu Financial, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company Corporation as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant All matters relating to the Memorandum Corporation and the Subscriber’s investment in the Shares have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended explained to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received advisors and have carefully reviewed you understand the Memorandum, this Subscription Agreement speculative nature of and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make risks involved in this investment. The Subscriber recognizes that understands the Company has a limited financial business in which the Corporation is engaged and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s an investment in the Tokens Corporation and making an informed investment decision with respect thereto. The Subscriber and his attorneys, investment advisors, business advisors, tax advisors and accountants have had access to the Corporation reports, schedules, forms, statements and other documents filed by it with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred to as the “SEC Documents”), and, prior to the execution of this letter by the Subscriber, the Subscriber has obtainedcarefully reviewed the SEC Documents. The Subscriber relied solely on the information contained in the SEC Documents in making his investment decision, and, in making his investment decision, the Subscriber’s judgment, sufficient information from the Company Subscriber has disregarded any other written or Subscriber’s Advisorsoral statements or information, if any, to evaluate concerning the Corporation or an investment in the Shares made by any party, including, without limitation, the officers, directors, and employees of the Corporation. The Subscriber understands the business in which the Corporation will be engaged and has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of such an investment in the Corporation and to make making an informed investment decision with respect thereto. The Subscriber has evaluated obtained sufficient information to evaluate the merits and risks of investing in the Tokensinvestment and to make such a decision. To the extent that the Subscriber has deemed it appropriate to do so, is able to bear such risksthe Subscriber has retained, and has determined that relied upon, appropriate professional advice regarding the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directorstax, officersaccounting, employees, agents or other representatives with respect to the legal, tax, economic investment and related considerations financial merits and consequences of an investment in the TokensShares. The Subscriber acknowledges that he has relied solely on the professional advice of his own counsel with respect to the transactions set forth herein.
b. The Subscriber and his attorneys, investment advisors, business advisors, tax advisors and accountants have had sufficient access to all documents and records pertaining to the Corporation and this proposed investment in the Shares. Additionally, the Subscriber and all of his advisors have had the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and other matters pertaining to this investment, and all such questions have been answered to the satisfaction of the Subscriber. The Subscriber and all of his advisors have had an opportunity to obtain any additional information which the Corporation possesses, or can acquire without unreasonable effort or expense, necessary to verify the accuracy of the information furnished in the SEC Documents;
c. The Subscriber (i) has adequate means of providing for his current needs and possible personal contingencies and those of his family, if applicable, in the same manner as he would have been able to provide prior to making the investment in the Shares, (ii) has no need for liquidity in this investment, (iii) is aware of and able to bear the risks of this investment for an indefinite period of time and (iv) is presently able to afford a complete loss of such investment;
d. The Subscriber recognizes that an investment in the Shares involves significant risks, including, without limitation, those set forth in the SEC Documents. The Subscriber acknowledges that the Corporation continued operation is highly dependent upon its ability to raise substantial additional capital and/or increase revenues. No assurance can be given that the Corporation will be successful in raising any such capital and/or increasing revenues. The failure to raise such capital and/or increase revenues will have a material adverse effect on the Corporation’s operations and financial condition and on its ability to continue as a going concern;
e. The Subscriber has not relied on any promotional sales materials, representations or warranties or financial projections with respect to the Corporation or its business and financial condition in connection with determining the merits of an investment in the Shares. The Subscriber understands and acknowledges that no representations concerning the accuracy of information or financial projections, if any, are being made by the Corporation and the Subscriber has completely disregarded such information or financial projections, if any, in determining whether to purchase the Shares.
f. The Subscriber and his advisors have reviewed the financial condition of the Corporation and the Corporation’s financial statements as set forth in the SEC Documents, and the Subscriber agrees and acknowledges that the Corporation has relied on not made and is making no representations, warranties or predictions regarding the advice of, Corporation’s present or has consulted with, only its own Advisors, if anyfuture financial condition.
l. g. The Subscriber is acquiring understands that none of the Tokens solely Shares have been registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state in reliance upon exemptions therefrom for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in partprivate offerings. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of understands that the Tokens and Shares must be held indefinitely unless the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless sale thereof is subsequently registered under the Securities Act and applicable state securities laws or an exemption exemptions from such registration is are available. It is The Subscriber further understands that the Corporation has no obligation to repurchase any of the Shares. All certificates evidencing the Subscriber’s ownership of the Shares will bear a legend stating that the Shares have not anticipated been registered under the Securities Act or state securities laws and they may not be resold unless they are registered under the Securities Act and applicable state securities laws or exempt therefrom.
h. The Shares are being purchased solely for the Subscriber’s account for investment and not for the account of any other person and not with a view to or for distribution, assignment or resale in connection with any distribution within the meaning of the Securities Act, and no other person has a direct or indirect beneficial interest in such Shares. The Subscriber represents that there he has no agreement, understanding, commitment or other arrangement with any person and no present intention to sell, transfer or assign any Shares;
i. The Subscriber realizes that he may not be able to sell or dispose of any of the Shares and that no market of any kind (public or private) may be available for any of the Shares. In addition, the Subscriber understands that his right to transfer the Shares will be any market for resale subject to restrictions contained in applicable Federal and state securities laws;
j. All information which the Subscriber has provided to the Corporation concerning himself, his financial position and his knowledge of financial and business matters, including all information contained in this Subscription Agreement, is correct and complete as of the Tokensdate set forth on the signature page hereof, and if there should be any adverse change in such securities information prior to his subscription being accepted, he will immediately provide the Corporation with such information;
k. The Subscriber’s principal residence (if subscriber is an individual) or principal business address, as applicable, is in the State of _______________, and the Subscriber has no present intention to move such residence or principal business address, as applicable, from such State;
l. The Subscriber understands that no financial projections are included in the SEC Documents, and neither the Subscriber nor any of his advisors are relying on any financial projections in connection with determining the merits of an investment in the Shares. The Subscriber understands and acknowledges that no representations concerning the accuracy of information or financial projections, if any, not be freely transferable included in the SEC Documents are being made and he and all of his advisors have completely disregarded such information or financial projections, if any, not included in the SEC Documents in determining whether to invest in the Shares; and
m. The Subscriber understands that the Corporation may at any time.
n. The Subscriber has adequate means , in its sole discretion, arrange for the offer and sale of providing for additional shares of its capital stock to current or additional shareholders, at such Subscriber’s current financial needs prices and foreseeable contingencies and has no need for liquidity from in such amounts as it, in its investment sole discretion, may determine to be in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws best interests of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCorporation.
Appears in 2 contracts
Samples: Subscription Agreement (Neogenomics Inc), Subscription Agreement (Neogenomics Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to the Company:
a. THE UNDERSIGNED SUBSCRIBER UNDERSTANDS THAT THE COMMON STOCK BEING OFFERED HEREBY HAS NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES AGENCY OR ANY FOREIGN SECURITIES AGENCY.
b. The undersigned Subscriber is not an underwriter and is acquiring the Shares solely for investment for his, her or its own account and not with a view to, or for, resale in connection with any distribution in violation of any federal securities act, state securities act or any other applicable federal or state laws;
c. The undersigned Subscriber understands the speculative nature and agrees withrisks of investments associated with the Company, and confirms that the Shares would be suitable and consistent with his, her or its investment program; that his, her or its financial position enable him, her or it to bear the risks of this investment; and that there is no public market for the Shares subscribed for herein;
d. The Shares subscribed for herein may not be transferred, encumbered, sold, hypothecated, or otherwise disposed of, if such disposition will violate any federal and/or state securities acts. Disposition shall include, but is not limited to acts of selling, assigning, transferring, pledging, encumbering, hypothecating, giving, and any form of conveying, whether or not voluntary;
e. Except as set forth in Section 4 hereof, the Company as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant is not required to the Memorandum have not been and will not be registered under the Securities Act register or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt seek an exemption from registration under any federal securities act, state securities act, or any foreign securities act respecting the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties offer and agreements issuance of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the OfferingShares.
f. The Subscriber and its Advisors, if any, have has had a reasonable the opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, and has received additional information from the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered Company to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by extent that the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissionspossessed such information, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering necessary to evaluate the merits and risks of the Subscriber’s any investment in the Tokens Company. Further, the Subscriber has been given an opportunity to question the appropriate executive officers of the Company; and, copies of all registration statements and reports filed with the United States Securities and Exchange Commission (the "SEC"), including the company's most recent 10-KSB, 10-QSB, Proxy statement, and periodic reports as filed on Form 8-K (the "SEC Reports").
g. The Subscriber has obtained, sufficient knowledge and experience in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, financial matters to evaluate the merits and risks of such this investment and to make an informed investment decision with respect thereto. further, the Subscriber is capable of reading and interpreting financial statements;
h. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees acknowledges that it must bear is an "accredited investor" within the substantial economic risks meaning of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered Regulation D as promulgated under the Securities Act and applicable state securities laws of 1933, as amended (the "Securities Act"); and
i. The Subscriber acknowledges that if he, she or an exemption from such registration it is available. It is not anticipated that there will be any market for resale a resident of the TokensState of Florida, he, she or it has the privilege of declaring this transaction null and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural personvoid, represents provided that the Subscriber has full power and authority communicates such intention to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; Company in writing within three (ii3) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws days of the state of its organization, the consummation of the transactions contemplated hereby is authorized bytender of his, and will not result in a violation of state law her or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orconsideration.
Appears in 2 contracts
Samples: Subscription Agreement (Black Family 1997 Trust), Subscription Agreement (Environmental Solutions Worldwide Inc)
Representations and Warranties of the Subscriber. The Each Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as follows:
a. (a) The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of given the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of of, and receive answers from a person or persons acting on behalf of from, the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives authorized representative(s) concerning the terms and all such questions have been answered to the full satisfaction conditions of the Subscriber and its Advisors, if anyoffering.
g. (b) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial matters and business matters, and, in particular, investment in non-listed and unregistered securities, such investments that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s investment in the Tokens Company and has obtained, in the Subscriber’s judgment, obtained sufficient information from relating to the Company or Subscriber’s Advisors, if any, and the Offering to enable the Subscriber to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriberinvestment.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. (c) The Subscriber is acquiring the Tokens solely Common Stock and Warrant for the Subscriber’s own account for investment purposes only and not with a view for distribution or resale to resale others in violation of the Securities Act. Subscriber is not an “underwriter” of any of the Company’s securities as that term is defined in Section 2(11) of the Securities Act, and Subscriber shall not take or distribution thereofcause to be taken any action that would cause Subscriber to be deemed an underwriter of the Company’s securities.
(d) Subscriber understands that the Units, in whole Common Stock, the Warrant and the Common Stock underlying the Warrant, have not been registered under the Securities Act pursuant to the provisions of the securities or in partother laws of any applicable jurisdictions. The Subscriber understands that the Company has made no agreement or arrangement, formal or informal, with representation that it will register any person to sell or transfer all or any part of the Tokens Units, Common Stock, the Warrants and the Common Stock underlying the Warrants sold hereunder.
(e) The Subscriber has reviewed or had the opportunity to review all public filings made by the Company with the Securities and Exchange Committee (“SEC”) through the SEC website at xxx.xxx.xxx.
(f) THE SUBSCRIBER RECOGNIZES THAT AN INVESTMENT IN THE COMPANY INVOLVES SUBSTANTIAL RISKS. THE SUBSCRIBER UNDERSTANDS THAT INVESTMENT IN THE COMPANY’S SECURITIES IS SPECULATIVE AND THAT THE SUBSCRIBER COULD LOSE THE SUBSCRIBER’S ENTIRE INVESTMENT. THE SUBSCRIBER REPRESENTS AND WARRANTS THAT SUBSCRIBER CAN SUSTAIN SUCH AN ENTIRE LOSS.
(g) The Subscriber’s overall commitment to investments that are not marketable is not disproportionate to the Subscriber’s net worth, and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear need for liquidity in the substantial economic risks of its Subscriber’s investment in the Tokens andUnits, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power other sources of income or funds to provide for the Subscriber’s current needs and authority to execute possible contingencies.
(h) Subscriber knows of no public solicitation or advertisement of any offer in connection with the proposed issuance and deliver this Subscription Agreement sale of the securities hereunder. Subscriber is not purchasing the Units as a result of any advertisement, article, notice or other communication regarding the Company or the Units published in any newspaper, magazine, or similar media or broadcast over television or radio or the Internet or presented at any seminar or through any other general solicitation or general advertisement and all other related agreements acknowledges that the Subscriber had a pre-existing business or certificates and to carry out personal relationship with an officer or director or authorized representative of the provisions hereof and thereof; Company.
(iii) if If an individual, the Subscriber is a United States citizen whose principal residence is as set forth on the signature page hereto.
(j) If a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization trust or other non-individual entity, represents that the Subscriber is authorized and otherwise duly qualified to purchase and hold the Units, the Common Stock and the Warrant and has its principal office as set forth on the signature page hereto. Further, such non-individual entity was not formed for the specific purpose of acquiring making an investment in the TokensCompany.
(k) With respect to the United States federal, such entity state and foreign tax aspects of Subscriber investment, Subscriber is duly organizedrelying solely upon the advice of Subscriber’s own tax advisors, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized byand/or upon Subscriber’s own knowledge with respect thereto. Subscriber has not relied, and will not result rely upon, any information with respect to this offering other than the information contained herein and in a violation of state law or its charter or other organizational documentsthe SEC Reports.
(l) The answers provided by the Subscriber to the questions contained in Section 5 below, such entity has full power and authority to execute and deliver this Subscription Agreement and as well as all other related agreements information that the Subscriber has provided to the Company, either directly or certificates indirectly, concerning the Subscriber’s financial position and to carry out knowledge of financial and business matters, is correct and complete as of the provisions date hereof and thereof and to purchase and hold as of the Tokens, the execution and date of delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orto the Company.
Appears in 2 contracts
Samples: Subscription Agreement (Arista Power, Inc.), Subscription Agreement (WindTamer Corp)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants as follows to the Corporation at the date of this Agreement and at the Time of Closing and acknowledges and confirms that the Corporation is relying on such representations and warranties in connection with the offer, sale and issuance of the Debentures to the Subscriber:
(a) The Subscriber is purchasing the Debentures as principal;
(b) The Subscriber is resident in or is subject to the laws of the Province or Territory of: o Alberta o Northwest Territories o Xxxxxx Xxxxxx Island o British Columbia o Nova Scotia o Quebec o Manitoba o Nunavut o Saskatchewan o Newfoundland and Labrador x Ontario o Yukon o New Brunswick
(c) The Subscriber’s aggregate Subscription Price in respect of the Debentures is not less than $150,000 which will be paid in cash at or prior to the Closing Time;
(d) The Subscriber has not been created or used solely to purchase or hold securities in reliance upon the exemption contained in Section 2.10 of National Instrument 45-106 Prospectus and Registration Exemptions (“NI 45-106”);
(e) THE SUBSCRIBER HAS KNOWLEDGE IN FINANCIAL AND BUSINESS AFFAIRS, IS CAPABLE OF EVALUATING THE MERITS AND RISKS OF AN INVESTMENT IN THE SECURITIES, AND IS ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT EVEN IF THE ENTIRE INVESTMENT IS LOST;
(f) The Subscriber has not been provided with a prospectus, an offering memorandum or any other document in connection with its subscription for Debentures and the decision to subscribe for the Debentures and execute this Agreement has not been based upon any verbal or written representation made by or on behalf of the Corporation or any employee or agent of the Corporation and has been based entirely upon the Term Sheet, this Agreement and information which has been publicly filed at xxx.xxxxx.xxx by the Corporation pursuant to a requirement under Applicable Securities Laws (the “Public Record”);
(g) The distribution of the Debentures has not been made through, or as a result of, and is not being accompanied by, (i) a general solicitation, (ii) any advertisement including articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or (iii) any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(h) The Subscriber is eligible to purchase the Debentures pursuant to the exemption from prospectus and registration requirements in Section 2.10 NI 45-106;
(i) The Subscriber was offered the Debentures in, and is resident in, the jurisdiction set out as the “Subscriber’s Address” on the first page of this Agreement and intends the Applicable Securities Laws of that jurisdiction to govern the offer, sale and issuance of the Debentures to the Subscriber;
(j) The Subscriber is not a “U.S. Person” (as that term is defined Regulation S promulgated under the U.S. Securities Act, which definition includes, but is not limited to, an individual resident in the United States, an estate or trust of which any executor or administrator or trustee, respectively, is a U.S. Person and agrees with, any partnership or company organized or incorporated under the Company as follows:laws of the United States) and is not acquiring the Debentures for the account of or benefit of a U.S. Person or a person in the United States;
a. (k) The Subscriber has been independently advised as to and is aware of the resale restrictions under Applicable Securities Laws with respect to the Debentures and acknowledges and understandsreceipt of a written notice of the legend restriction notation applicable to the resale of the Debentures;
(l) None of the funds that the Subscriber is using to purchase the Debentures are to the knowledge of the Subscriber, proceeds obtained or derived, directly or indirectly, as a result of illegal activities;
(m) The Subscriber has not received, nor does it expect to receive any financial assistance from the Corporation, directly or indirectly, in respect of the Subscribers’ purchase of Debentures;
(n) No person has made any oral or written representations to the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been and any person will not be registered under the Securities Act resell or any state securities lawsrepurchase; (ii) that any person will refund the offering and sale purchase price of the Tokens is intended Debentures; or (iii) as to be exempt from registration under the Securities Act, by virtue future value or price of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements any of the Debentures;
(o) If the Subscriber contained in is an individual, he or she is of legal age and is legally competent to execute, deliver and perform his or her obligations under this Subscription Agreement. If the Subscriber is not an individual, (i) it has the legal capacity and competence to execute, deliver and perform its obligations under this Agreement; and (iiiii) the Tokens are subject to restrictions execution and delivery of and performance by the Subscriber of this Agreement have been authorized by all necessary corporate or other action on transferability the part of the Subscriber;
(p) This Agreement has been duly executed and resale under delivered by the Securities Act Subscriber, and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction constitutes a legal, valid and binding agreement of the Subscriber enforceable against him, her or receiver it in accordance with its terms;
(q) The execution and delivery of and performance by the Subscriber of this Agreement do not and will not (or would not with the giving of notice, the lapse of time or the happening of any other event of condition) result in a breach or violation of or a conflict with, or allow any other person to exercise any rights under any of the Tokens.
b. Prior to the execution terms or provisions of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisorconstating documents or by-laws, if any (collectivelyapplicable, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by contract, agreement, instrument, undertaking or covenant to which the Subscriber is a party or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters by which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.is bound;
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. (r) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than obtained such legal and tax advice as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it considers appropriate in connection with the Offering to evaluate the merits offer, sale and risks issuance of the Subscriber’s investment in Debentures and the Tokens execution, delivery and has obtained, in performance by it of this Agreement and the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect theretotransactions contemplated by this Agreement. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company Corporation or its affiliates or counsel to any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment them in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens this regard; and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 1 contract
Samples: Private Placement Subscription Agreement (Fluid Music Canada Inc)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to and agrees with, covenants with the Company as follows:
a. The Subscriber acknowledges and understands: Corporation (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the which representations, warranties and agreements covenants will be true and correct as at the time of delivery of Shares with the same force and effect as if they had been made by the Subscriber at such time, and shall survive the Closing) that:
(a) the Subscriber is not a U.S. Person;
(b) the Subscriber is acquiring the Shares as a principal (and not as an agent) for investment purposes only, with no intention or view to reselling or distributing any portion or beneficial interest in the Shares, and the Subscriber will be the beneficial owner of any Shares to be issued to the Subscriber if, as and when this Subscription is accepted by the Corporation in whole or in part;
(c) the Subscriber is resident in the jurisdiction identified in the address of the Subscriber contained in this Subscription Agreement; and (iii) set forth on the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution cover page of this Subscription Agreement, which address is the residence or place of business of the Subscriber and was not created or used solely for the purpose of acquiring the Shares;
(d) if the Subscriber is resident outside of Canada:
(i) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the offer and sale of the Shares,
(ii) the Subscriber is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the applicable securities laws of the International Jurisdiction do not require the Corporation to make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Shares,
(iv) the purchase of the Shares by the Subscriber does not trigger:
A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or B. any continuous disclosure reporting obligation of the Corporation in the International Jurisdiction,
(v) the Subscriber will, if requested by the Corporation, deliver to the Corporation a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Corporation, acting reasonably, and
(vi) if it is a resident of the United Kingdom, it is a person of the kind described in Article 19 or 49(2)(a) to (e) of the Financial Services and Markets Xxx 0000 (Financial Promotion) Order 2005 and is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purpose of its business;
(e) the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber’s attorney, accountant, purchaser representative and/or tax advisoror, if any the Subscriber is a partnership, syndicate or other form of unincorporated organization, the Subscriber has all necessary approvals of relevant parties to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
(collectively, “Advisors”), have received and have carefully reviewed f) the Memorandum, entering into of this Subscription Agreement and the documents annexed hereto or referenced herein (collectivelytransactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the “Offering Documents”constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(g) the Subscriber has duly completed, executed and any other delivered to the Corporation, as applicable, all securities forms, undertakings, questionnaires and all other documents requested by the Subscriber or its Advisors, if any, and understand Corporation in order to enable the information contained therein. The Subscriber is satisfied that it has received adequate information with respect Corporation to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that determine the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability availability of an investment in the Company, Exemption pursuant to section 3.2 hereof;
(h) the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is affairs as to be capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s investment in the Tokens Shares and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear the economic risk of loss of such risksinvestment;
(i) the Subscriber has read the Offering Memorandum and has had the opportunity to ask questions of, and has determined that receive answers from, the Tokens are Corporation, or a suitable investment for person authorized to act on behalf of either the Subscriber.Corporation, concerning the business and affairs of the Corporation and the attributes of the Shares which the Subscriber deems necessary and appropriate;
k. The (j) in investing in the Shares, the Subscriber is not relying solely on the Company representations and warranties contained in the Offering Memorandum;
(k) the Subscriber has sought no advice in relation to the investment in the Shares from the Corporation, the Manager, or any of its directorsaffiliates, officersassociates, employeesagents, agents employees or other representatives with respect and neither the Corporation nor any of its affiliates, associates, agents, employees or representatives has provided any advice to the legal, tax, economic and related considerations of an investment Subscriber in the Tokensrelation to such purchase, and the Subscriber has relied on the advice of, or has consulted with, only been advised to consult with its own Advisors, if any.advisers with respect to an investment in the Shares;
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and (l) the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands duly executed and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver delivered this Subscription Agreement and all other related agreements or certificates it constitutes a valid and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws binding agreement of the state of its organization, Subscriber enforceable against the consummation Subscriber;
(m) none of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and funds being used to purchase and hold the TokensShares are, to the execution and delivery Subscriber’s knowledge, proceeds obtained or derived directly or indirectly as a result of this Subscription Agreement has been duly authorized illegal activities. The funds being used to purchase the Shares which will be advanced, directly or indirectly, by all necessary action, this Subscription Agreement has been duly executed and delivered or on behalf of such entity and is a legal, valid and binding obligation the Subscriber to the Corporation or to the account of such entity; orthe Corporation hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering)
Appears in 1 contract
Samples: Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber by his signature below hereby acknowledgesrepresents, represents warrants and warrants to, and agrees with, certifies to the Company as follows:
a. (a) The Subscriber acknowledges and understands: (i) is aware that the Tokens offered pursuant to the Memorandum have Offering has not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws; (iilaws or regulations in reliance upon exemptions of Section 4(2) that the offering and sale of the Tokens is intended to be Securities Act and Regulation S thereunder, and similar exemptions under state law. The Subscriber will not offer or sell the Shares unless they are registered or are exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 4(a)(2and any applicable state securities laws or regulations. Subscriber agrees not to engage in hedging transactions with regard to such securities unless in compliance with the Securities Act.
(b) thereof, based, in part, upon The Subscriber is also aware that a legend will be placed on any certificate or certificates evidencing the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale Shares stating that they have not been registered under the Securities Act and setting forth or referring to the restrictions on transfers and sales thereof and that other legends required by Regulation S of the Securities Act may not also be transferred or resold placed upon the certificates evidencing the Shares. The Company will place stop transfer instructions against the Shares and the certificates therefor to restrict the transfer thereof, except as permitted under may be prescribed by the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the TokensAct.
b. Prior to (c) The Subscriber, or his adviser, has such knowledge and experience in financial and business matters that he is capable of evaluating the execution of this Subscription Agreement, the Subscriber merits and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if anyrisks of, and understand protecting his interests in connection with, an investment in the information contained thereinShares. The Subscriber is satisfied aware of the risks involved in his investment herein.
(d) The Subscriber has been provided with the opportunity to discuss the terms and conditions of this Offering and the business of the Company with members of management and to review all relevant financial information, books, records, and other information concerning the Company, such that it the Subscriber is familiar with the business, finances and general prospects for the future of the Company which he may consider significant for the purpose of making an investment decision. The Subscriber acknowledges that he has received adequate reviewed the reports and other information filed by the Company (or others with respect to all matters which it the Company) with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and the Securities Act.
(e) The Subscriber has the full right, power and authority to enter into this Agreement and to carry out and consummate the transactions contemplated herein. This Agreement constitutes the legal, valid and binding obligation of the Subscriber. If the Subscriber is a corporation or its Advisorstrust, if anythe officer or trustee executing this Agreement represents and warrants that he is authorized to so sign; that the corporation or trust is authorized by the Articles (or Certificate) of Incorporation and By-laws of the corporation or by the trust agreement, consider material to its decision as the case may be, to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands(f) No representations, and has assurances or warranties have been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided made to the Subscriber Subscriber, or his adviser, by the Company or by any of its respective officers, directors, employees, agents, representativesemployees or affiliates, affiliates nor anyone else on their behalf, concerning, among others, the future profitability of the Company or related partiesthe Subscriber's investment in it, and in entering into this transaction the Subscriber is not relying upon any information, other than the results of his, or his adviser's, own independent investigation.
d. (g) The Subscriber will not offer or sell the Shares (which term shall include any pre-arrangement for a purchase by a U.S. person or other person in the U.S.) directly or indirectly, in the United States or to any natural person who is a resident of the United States or to any other "U.S. person" (as defined below) or for the account or benefit of any "U.S. person" unless registered under the Securities Act and all applicable state laws or an exemption from the registration requirements of the Securities Act and similar state laws is available.
(h) The Subscriber is purchasing neither a U.S. person nor acquiring the Tokens based on Shares for the account or benefit of any U.S. person. The Subscriber’s own assessment , if other than a natural person, was not formed for the purpose of acquiring the Shares. The Subscriber understands that a "U.S. person", as defined by Regulation S in Rules 901 through 905 promulgated under the Securities Act ("Regulation S"), includes any natural person resident in the United States; any partnership or corporation organized or incorporated under the laws of the United States; any estate of which any executor or administrator is a "U.S. person"; any trust of which any trustee is a "U.S. person"; any agency or branch of a foreign entity located in the United States; any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a "U.S. person"; any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and knowledge any partnership or corporation organized or incorporated under the laws of a jurisdiction other than the United States which was formed by a "U.S. person" principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D promulgated under the Act) who are not natural persons, estates or trusts.
(i) The Subscriber is making this subscription from his residence or offices at the address set forth above. The Subscriber understands that the exemption afforded by Regulation S requires that the purchasers of the securities not be in the United States when the offer is made. The purchase of the Shares hereunder by the Subscriber is in accordance with all securities and other laws of the jurisdiction in which it is incorporated or legally resident. This Agreement has not been executed or delivered by the Subscriber in the United States.
(j) Susbcriber is not an underwriter of, or dealer in, the Shares or the Common Stock of the Company, its managementand Susbcriber is not participating, crypto-currencies and other digital asset securities, together with pursuant to a contractual agreement in the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved distribution of the Offering Shares. No person is entitled to receive a selling commission, fee or passed upon or endorsed the merits other remuneration in respect of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf sale of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. Shares. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, Shares are being acquired by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person Susbcriber for brokerage commissionshis own account, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment purposes and not with a view to resale the sale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer of all or any part of the Tokens Shares, nor with any present intention to sell or in any way distribute the same, as those terms are used in the Securities Act, and the Subscriber has no plans to enter into any such agreement or arrangementrules and regulations promulgated thereunder.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 1 contract
Samples: Regulation S Subscription Agreement (Minghua Group International Holdings LTD)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to shares of Common Stock included in the Memorandum PPO Units (the “Securities”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Securities. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering. The Subscriber further acknowledges that the Company has not yet filed “Form 10 Information” (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company, and Subscriber acknowledges that the Company is, in fact, presently a shell company.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that he is purchasing the PPO Units notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including financial statements for recently acquired or to be acquired businesses.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the Registration Rights Agreement and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement and the Registration Rights Agreement, assuming due execution by the parties hereto and thereto, constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their respective terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Subscription Agreement;
(ii) The Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Securities pursuant to registration of the Securities under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensSecurities prior to the expiration of a period of one year after the date of transfer of the Securities under this Subscription Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Securities prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Securities, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.
i. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors in securities of the Company.
j. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Securities and could afford complete loss of timesuch investment.
o. k. The Subscriber: (i) if Subscriber is not subscribing for Securities as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
l. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract
Samples: Subscription Agreement (Universal Gold Mining Corp.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesrepresents, represents warrants and warrants to, and agrees with, covenants to the Company Corporation as follows:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale is aware of the Tokens is intended Corporation's business affairs and financial condition and has acquired sufficient information about the Corporation to be exempt from registration under reach an informed and knowledgeable decision to acquire the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained thereinShares. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s 's investment in the Tokens Corporation and has obtained, in the capacity to protect the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto's own interests. The Subscriber has evaluated the risks of investing acknowledges that an investment in the Tokens, Corporation is able highly speculative and entails a substantial degree of risk and the Subscriber is in a position to bear lose the entire amount of such risks, and has determined that investment.
b. The Subscriber is acquiring the Tokens are a suitable Shares for investment for the Subscriber.
k. The Subscriber is 's own account, not relying on as a nominee or agent, and not with the Company view to, or for resale in connection with, any distribution thereof within the meaning of its directorsthe Securities Act of 1933, officers, employees, agents or other representatives with respect to as amended (the legal, tax, economic and related considerations of an investment in the Tokens“Securities Act”), and the Subscriber has relied on the advice ofno present intention of selling, granting any participation in, or has consulted with, only its own Advisors, if anyotherwise distributing the Shares.
l. c. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and does not with a view to resale or distribution thereofpresently have any contract, in whole or in part. The Subscriber has no undertaking, agreement or arrangement, formal or informal, arrangement with any person to sell sell, transfer or transfer all grant participation to such person, or to any part third person, with respect to any of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. Shares. The Subscriber understands that the Shares have not been, and agrees that it must bear will not be, registered under the substantial economic risks Securities Act by reason of its investment in a specific exemption from the Tokens and, correspondinglyregistration provisions of the Securities Act, the business objectives availability of which depends upon, among other things, the bona fide nature of the Company, investment intent and the accuracy of the Subscriber's representations as expressed herein. The Subscriber understands that no public market now exists for any of the securities issued by the Corporation and that the Corporation has made no assurances that a public market will ever exist for the Corporation's securities.
d. The Subscriber understands that the Shares constitute “restricted securities” under the Securities Act. The Subscriber further understands that the Shares must be held indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents understands that the Subscriber has full power and authority Corporation is under no obligation to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out register the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orShares.
Appears in 1 contract
Samples: Subscription Agreement (Helios & Matheson Analytics Inc.)
Representations and Warranties of the Subscriber. 3.1 The Subscriber hereby acknowledges, represents represents, warrants and warrants tocovenants to and with the Issuer it is a director or officer of the Issuer and that, as at the date given above and agrees withat the Closing Date:
(a) no prospectus or registration statement has been filed by the Issuer with the Commission in connection with the issuance of the Shares and such issuance is exempted from the prospectus requirements of the Act and that:
(i) the Subscriber is restricted from using most of the civil remedies available under the Act;
(ii) the Subscriber may not receive information that would otherwise be required to be provided under the Act; and
(iii) the Issuer is relieved from certain obligations that would otherwise apply under the Acts;
(b) to the best of the Subscriber’s knowledge, the Company as followsShares were not advertised;
(c) no person has made to the Subscriber any written or oral representations:
a. The Subscriber acknowledges and understands: (i) that any person will resell or repurchase any of the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; Shares;
(ii) that any person will refund the offering and sale purchase price of any of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementShares; and or
(iii) as to the Tokens are subject future price or value of any of the Shares.
(d) this subscription has not been solicited in any other manner contrary to restrictions on transferability and resale the Act;
(e) the Subscriber acknowledges that the Shares have not been registered under the Securities 1933 Act and may not be transferred offered or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment sold in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of United States unless subsequently registered under the Securities 1933 Act and applicable state the securities laws of all applicable states of the United States or an exemption from such registration requirements is available. It ;
(f) the Subscriber is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at purchasing Shares for the account or benefit of any time.person, in particular a U.S. Person, other than themselves;
n. The (g) the Subscriber will not engage in any Directed Selling Efforts in respect of the Shares (as that term is defined in the 1933 Act);
(h) the Subscriber has adequate means no knowledge of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment a “material fact” or “material change” (as those terms are defined in the Tokens for an indefinite period Act) in the affairs of time.the Issuer that has not been generally disclosed to the public, save knowledge of this particular transaction and knowledge of the Issuer’s proposed acquisition of rights in the CBM property in Indonesia and associated transactions;
o. The Subscriber: (i) if the Subscriber’s decision to tender this offer and purchase the Subscriber’s Shares has not been made as a natural person, represents that result of any verbal or written representation as to fact or otherwise made by or on behalf of the Issuer or any other person and is based entirely upon currently available public information concerning the Issuer and the information contained in this Agreement;
(j) the Subscriber has full power relied solely upon its own independent investigation in making a decision to purchase the Subscriber’s Shares and authority acknowledges that an investment in Shares is a speculative investment which involves a high degree of risk;
(k) the offer made by this subscription is irrevocable and requires acceptance by the Issuer;
(l) the Issuer will have the right to accept this subscription offer in whole or in part and the acceptance of this subscription offer will be conditional upon the sale of the Subscriber’s Shares to the Subscriber being exempt from the prospectus and registration requirements of the relevant securities legislation;
(m) the Subscriber has the legal capacity and competence to enter into and execute and deliver this Subscription Agreement and to take all other related agreements or certificates and to carry out actions required pursuant hereto and, if the provisions hereof and thereof; (ii) if Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity corporation it is duly organized, incorporated and validly existing and in good standing subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been given to authorize execution of this Agreement on behalf of the state Subscriber;
(n) the entering into of its organization, the consummation of this Agreement and the transactions contemplated hereby is authorized by, and will not result in a the violation of state any of the terms and provisions of any law applicable to, or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensconstating documents of, the execution and delivery Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which he is or may be bound;
(o) this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity by the Subscriber and is constitutes a legal, valid and binding obligation agreement of the Subscriber enforceable against the Subscriber;
(p) the Subscriber has been independently advised as to the applicable hold periods or resale restrictions imposed in respect of the Shares by applicable securities legislation and regulatory policies and confirms that no representations by the Issuer have been made respecting the resale of the Shares and is aware of the risks and other characteristics of the Shares and of the fact that the Subscriber may not be able to resell the Shares purchased by it except in accordance with the applicable securities legislation and regulatory policies, and the Subscriber has no immediate need for liquidity with respect to its investment in the Shares;
(q) the Subscriber is resident at the address and in the state or province or jurisdiction set out on the cover page of this Agreement, which address is the ordinary residence or place of business of the Subscriber and such entitybeneficial purchaser, if applicable, and was not created nor is it used solely for the purpose of acquiring the Subscriber’s Shares;
(r) if required by applicable securities legislation, policy or order or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Issuer in filing such reports, undertakings and other documents with respect to the issue of the Securities as may be required; orand
(s) the Subscriber acknowledges that the representations, warranties and covenants in this subsection are made with the intent that they will be relied upon by the Issuer in determining the Subscriber’s eligibility, or (if applicable) the eligibility of the others on whose behalf the Subscriber is contracting hereunder, to purchase Shares and the Subscriber agrees that the above representations, warranties and covenants in this subsection will be true and correct both as of the execution of this subscription and as of the Closing Date.
3.2 The foregoing representations, warranties and covenants are made by the Subscriber with the intent that they be relied upon by the Issuer in determining its suitability as a purchaser of Shares, and the Subscriber hereby agrees to indemnify the Issuer against all losses, claims, costs, expenses and damages or liabilities which it may suffer or incur as a result of reliance thereon. The Subscriber undertakes to notify the Issuer immediately of any change in any representation, warranty or other information relating to the Subscriber set forth herein which takes place prior to the Closing Date.
Appears in 1 contract
Representations and Warranties of the Subscriber. The sale of the Purchased Shares by the Corporation to the Subscriber is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the sale of the Purchased Shares or upon the issue of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or registration statement or delivering an offering memorandum or similar document. The Subscriber hereby and, if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, acknowledges, represents represents, warrants, covenants and warrants tocertifies to and with the Corporation that, as at the date given above and at the Closing Date: (a) the Corporation has advised you that the Corporation is relying on exemptions from the requirements under the Securities Laws to provide you with a prospectus or registration statement, and agrees withno prospectus or you will, if requested by the Corporation, comply with such other requirements as the Corporation may reasonably require; (h) you acknowledge that no agency, stock exchange or governmental agency, securities commission or similar regulatory authority or other entity has reviewed or passed on or made any finding or determination as to the merits of or made any recommendation or endorsement with respect to the Securities; (i) you acknowledge that: (i) no securities commission or similar regulatory authority has reviewed or passed on the merits of the Purchased Shares, (ii) there is no government or other insurance covering the Purchased Shares, (iii) there are risks associated with the purchase of the Purchased Shares and you are aware of the risks and other characteristics of the Purchased Shares, Administrative Support Clerk Ontario Securities Commission Xxxxx 0000, Xxx 00, 00 Xxxxx Xxxxxx Xxxx Xxxxxxx, Xxxxxxx X0X 0X0 Telephone: (000) 000-0000 (m) the funds representing the aggregate Purchase Price in respect of the Purchased Shares which will be advanced by the Subscriber to the Corporation hereunder will not represent proceeds of crime for the purpose of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTF Act”) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (United States) (the “PATRIOT Act”) and you acknowledge that the Corporation may in the future be required by law to disclose the Subscriber’s or Disclosed Purchaser’s name and other information relating to this Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PCMLTF Act and the PATRIOT Act; to the best of your knowledge, none of the subscription fiords to be provided hereunder (i) have been or will be obtained or derived, directly or indirectly, from or related to any activity that is deemed illegal under the laws of Canada or the United States or any other jurisdiction, or (ii) are being tendered on behalf of a Person or entity who has not been identified to you; you shall promptly notify the Corporation if you discover that any such representation ceases to be true, and shall provide the Corporation with appropriate information in connection therewith; (n) you have been advised to consult your own legal advisors with respect to the applicable hold periods imposed in respect of the Purchased Shares by the applicable Securities Laws and confirm that no representation by the Corporation has been made respecting the hold periods applicable to the Purchased Shares and you are solely responsible (and the Corporation is not responsible) for compliance with the applicable resale restrictions and the Subscriber confirms that it is solely responsible for obtaining its own legal, tax, investment and other professional advice with respect to the execution, delivery and performance by it of this Agreement and the transactions contemplated hereunder including the suitability of the Purchased Shares as an investment for the Subscriber, trading in the Purchased Shares, the Company as follows:
a. The Subscriber acknowledges tax consequences of purchasing and understandsdealing with the Purchased Shares and, and the resale restrictions and “hold periods” to which the Purchased Shares are or may be subject under Securities Laws and other applicable securities laws; (o) no Person has made to you any written or oral representations: (i) that any Person will resell or repurchase any of the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; Purchased Shares, (ii) that any Person will refund the offering and sale Purchase Price, (iii) as to the future price or value of any of the Tokens Purchased Shares, or (iv) that any of the Purchased Shares will be listed and posted for trading on a stock exchange or that application has been made to list and post any of the Purchased Shares for trading on a stock exchange; (p) you acknowledge that you have not received an offering memorandum, prospectus or other disclosure document in respect of the Purchased Shares or the Corporation describing the business and affairs of the Corporation in order to assist you in making an investment decision in respect of the Purchased Shares, that your decision to subscribe for Shares was based solely upon this Agreement and information about the Corporation which is intended publicly available and that you have not become aware of any advertisement in printed media of general and regular paid circulation, radio or television with respect to be exempt from registration under the distribution of the Purchased Shares; (q) you have no knowledge of a “material fact” or “material change” (as those terms are defined in the Securities Act, Laws) in the affairs of the Corporation that has not been generally disclosed to the public; (r) your decision to purchase the Purchased Shares has not been made as a result of any verbal or written representation as to fact or otherwise made by virtue or on behalf of Section 4(a)(2) thereof, based, in part, the Corporation or any other Person and is based entirely upon the representations, warranties and agreements covenants of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments Corporation provided to the Subscriber in this Agreement and on currently available public information concerning the Corporation; The Subscriber and, if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, acknowledges and agrees that the foregoing representations, warranties and covenants are made by the Company or any Subscriber and, if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, with the intent that they may be relied upon in determining its eligibility as a purchaser of the Purchased Shares under relevant Securities Laws and the Subscriber and, if applicable, the Disclosed Purchaser through the Subscriber acting as its respective officersagent, directors, employees, agents, hereby agrees to indemnify and hold harmless the Corporation and its representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, legal counsel and agents from and against all losses, liability, claims, costs, expenses and damages (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or other representatives with respect to the legaldefending against any claim, taxlawsuit, economic and related considerations of an investment administrative proceeding or investigation whether commenced or threatened) from reliance thereon in the Tokens, and the Subscriber has relied on the advice of, event that any of such representations or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, warranties are untrue in whole or in partany material respect. The Subscriber has no agreement and, if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, further agrees that by accepting the Purchased Shares, the Subscriber and, if applicable, the Disclosed Purchaser through the Subscriber acting as its agent, shall be representing and warranting that the foregoing representations and warranties contained herein or arrangementin any document furnished by the Subscriber or, formal or informalif applicable, the Disclosed Purchaser through the Subscriber acting as its agent, to the Corporation are true as at the Closing, with the same force and effect as if they had been made by the Subscriber as at the Closing and shall continue in full force and effect notwithstanding any person to sell subsequent disposition by the Subscriber or transfer all or any part the Disclosed Purchaser (if applicable) of the Tokens and Purchased Shares. The Subscriber or, if applicable, the Disclosed Purchaser through the Subscriber has no plans acting as its agent, undertakes to enter into notify the Corporation immediately of any such agreement changes in any representation, warranty or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that other information relating to the Subscriber has full power and authority or the Disclosed Purchaser (if applicable) set forth herein which takes place prior to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orClosing Date.
Appears in 1 contract
Representations and Warranties of the Subscriber. The By subscribing to the Offering, the Subscriber (and, if the Subscriber is purchasing the Shares subscribed for hereby acknowledgesin a fiduciary capacity, the person or persons for whom the Subscriber is so purchasing) represents and warrants toto the Company, which representations and agrees withwarranties are true and complete in all material respects, as of the Company as followsdate of each Closing:
a. (a) The Subscriber has all necessary power and authority under all applicable provisions of law to subscribe to the Offering, to execute and deliver this Agreement and to carry out the provisions thereof. All actions on the Subscriber’s part required for the lawful subscription to the Offering have been or will be effectively taken prior to the Closing. Upon subscribing to the Offering, this Agreement will be a valid and binding obligation of the Subscriber, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii) as limited by general principles of equity that restrict the availability of equitable remedies.
(b) The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any public availability of the Company’s investments provided to current Offering Circular, which can be viewed on the Subscriber by SEC Xxxxx Database under the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber filed number 024-10856. This Offering Circular is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with made available in the Company’s stated objectives.
e. The Subscriber acknowledges most recent qualified offering statement on SEC Form 1-A, as amended, deemed qualified on September 12, 2018. In the Company’s Offering Circular, it makes clear the terms and understands that neither the SEC nor any state securities commission has approved or disapproved conditions of the Offering or passed upon or endorsed and the merits risks associated therewith are described. The Subscriber has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Tokens or Company and has had the Offering.
f. opportunity to review the Company’s operations and facilities. The Subscriber and its Advisors, if any, have has also had a reasonable the opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerningand its management regarding the terms and conditions of this investment. The Subscriber acknowledges that except as set forth herein, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions no representations or warranties have been answered made to the full satisfaction of the Subscriber and its AdvisorsSubscriber, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation advisors or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if anyrepresentative, by the Company in writingor others with respect to the business or prospects of the Company or its financial condition.
i. (c) The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is matters to be capable of utilizing the such information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens Shares, and to make an informed decision relating thereto. Alternatively, the Subscriber has obtained, utilized the services of a purchaser representative and together they have sufficient experience in the Subscriber’s judgment, sufficient financial and business matters that they are capable of utilizing such information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such the Subscriber’s investment in the Shares, and to make an informed investment decision with respect relating thereto. The Subscriber has evaluated the risks of investing an investment in the TokensShares, is able to bear such risks, including those described in the section of the Offering Circular entitled “Risk Factors,” and has determined that the Tokens are a investment is suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part adequate financial resources for an investment of this character. The Subscriber could bear a complete loss of the Tokens and Subscriber’s investment in the Subscriber has no plans to enter into any such agreement or arrangementCompany.
m. (d) The Subscriber understands that the Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the Securities Act, and agrees that it must bear reliance on such exemption is predicated in part on the substantial economic risks truth and accuracy of its investment the Subscriber’s representations and warranties, and those of the other purchasers of the Shares in the Tokens andOffering. The Subscriber further understands that the Shares are not being registered under the securities laws of any states on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state, correspondinglysince the Shares are “covered securities” under the National Securities Market Improvement Act of 1996. The Subscriber covenants not to sell, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated transfer or otherwise disposed dispose of any Shares unless subsequently such Shares have been registered under the Securities Act and under applicable state securities laws laws, or an exemption exemptions from such registration is requirements are available. It is not anticipated .
(e) The Subscriber acknowledges and agrees that there is no ready public market for the Shares and that there is no guarantee that a market for their resale will be ever exist. The Company has no obligation to list any of the Shares on any market for or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Tokens, Shares. The Subscriber must bear the economic risk of this investment indefinitely and such securities will not be freely transferable at any timethe Subscriber acknowledges that the Subscriber is able to bear the economic risk of losing the Subscriber’s entire investment in the Shares.
n. (f) The Subscriber has adequate means represents that either: (i) the Subscriber is an “accredited investor” within the meaning of providing Rule 501 of Regulation D under the Securities Act; or (ii) the Purchase Price, together with any other amounts previously used to purchase Shares in the Offering, does not exceed ten percent (10%) of the greater of the Subscriber’s annual income or net worth (or in the case where the Subscriber is a non-natural person, their revenue or net assets for such Subscriber’s current financial needs and foreseeable contingencies and most recently completed fiscal year end). The Subscriber represents that to the extent it has no need for liquidity from any questions with respect to its status as an accredited investor, or the application of the investment in the Tokens for an indefinite period of timelimits, it has sought professional advice.
o. The Subscriber: (ig) if Within five (5) days after receipt of a natural personrequest from the Company, represents that the Subscriber has full power hereby agrees to provide such information with respect to its status as a stockholder (or potential stockholder) and authority to execute and deliver this Subscription Agreement such documents as may reasonably be necessary to comply with any and all other related agreements laws and regulations to which the Company is or certificates may become subject, including, without limitation, the need to determine the accredited investor status of the Company’s stockholders.
(h) The Subscriber acknowledges that the Per Share Purchase Price of the Shares to be sold in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to carry out value. The Subscriber further acknowledges that future offerings of securities of the provisions hereof Company may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.
(i) The Subscriber maintains the Subscriber’s domicile (and thereof; is not a transient or temporary resident) at the address provided with the Subscriber’s subscription.
(j) If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Subscriber’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.
(k) If the Subscriber is purchasing the Shares in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or any other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is Subscriber has been duly organized, validly existing authorized and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority empowered to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out subscription documents. Upon request of the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution Subscriber will provide true, complete and delivery current copies of this Subscription Agreement has been duly authorized by all necessary actionrelevant documents creating the Subscriber, this Subscription Agreement has been duly executed and delivered on behalf authorizing its investment in the Company and/or evidencing the satisfaction of such entity and is a legal, valid and binding obligation of such entity; orthe foregoing.
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsof the date hereof that:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. 4.1 The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of Cayman Islands, and has all requisite corporate power and legal capacity and authority to enter into this Agreement, and that this Agreement, when executed and delivered, will constitute its valid and legally binding obligation, enforceable against the state Subscriber in accordance with its terms except to the extent the enforceability thereof may be limited by bankruptcy laws, insolvency laws, reorganization laws or other laws affecting creditor’s rights generally or by general equitable principles.
4.2 The execution, delivery and performance by Subscriber of its organizationthis Agreement, and the consummation of the transactions contemplated hereby is authorized bytransaction hereunder, do not and will not conflict with, contravene, result in a violation or breach of state or default (with or without the giving of notice or the lapse of time or both): (a) any law applicable to the Subscriber or any of its charter properties or assets; (b) any contract, agreement or other organizational documents, such entity has full power and authority instrument to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out which the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and Subscriber is a legalparty or by which its properties or assets may be bound, valid except for violations and binding obligation defaults that, individually and in the aggregate, would not materially impair the ability of such entity; orthe Subscriber to perform its obligations hereunder.
4.3 The Subscriber hereby confirms, that the New Shares to be acquired by the Subscriber will be acquired for investment for the Subscriber’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same.
4.4 The Subscriber acknowledges that all share certificates evidencing the New Shares subscribed hereunder shall bear (i) the following legend: “These securities have been acquired for investment and have not been registered under the US Securities Act of 1933 or the securities laws of any state and may not be sold, offered for sale, pledged or hypothecated in the absence of an effective registration statement as to the securities under said Act or an exemption therefrom.” and
Appears in 1 contract
Representations and Warranties of the Subscriber. The Each Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. The Subscriber acknowledges (a) This Agreement constitutes a valid and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements legally binding obligation of the Subscriber contained enforceable in this Subscription Agreement; and (iii) the Tokens are accordance with its terms, subject to restrictions on transferability laws of general application relating to bankruptcy, insolvency and resale under the Securities Act relief of debtors, rules and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokenslaws governing specific performance, injunctive relief and other equitable remedies.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the (b) The Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any principal place of business is identified in the address of Subscriber set forth on Exhibit A.
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”c) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Class G Units for the Subscriber’s own assessment account for investment only, and knowledge not with the view to the resale or distribution thereof.
(d) The Subscriber has had an opportunity to have the Subscriber’s questions with respect to the Company and the business plan of the Company answered by the appropriate officers of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved desires no further or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of additional information concerning the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge operation and experience in financial, tax deems such information received and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering reviewed adequate to evaluate the merits and risks of the Subscriber’s investment in the Tokens Company.
(e) The Subscriber has sufficient experience in business, financial and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, investment matters to be able to evaluate the merits and risks involved in the purchase of such investment the Class G Units and to make an informed investment decision with respect thereto. to such purchase.
(f) The Subscriber has evaluated can afford a complete loss of the risks value of investing in the Tokens, Class G Units and is able to bear such risks, and has determined that the Tokens are a suitable investment economic risk of holding the Class G Units for the Subscriberan indefinite period.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. (g) The Subscriber understands and agrees that it must bear the substantial economic risks Class G Units have not been registered under the Securities Act of its investment in 1933, as amended (the Tokens and“Securities Act”), correspondinglyor under any applicable state securities laws, the business objectives of the Company, indefinitely because the Tokens may not nor can they be sold, hypothecated transferred, or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable or state securities laws law or an exemption from such registration is then available. It The Subscriber acknowledges that the Company has made no undertaking either to register the Class G Units or to make available any exemption from registration or to supply any information to facilitate the sale of the Class G Units. The Subscriber further understands and agrees that the Company will not honor any attempt by the Subscriber to sell, pledge, transfer or otherwise dispose of the Class G Units in the absence of an effective registration statement under the Securities Act or an opinion of counsel satisfactory in form and substance to the Company that an exemption is not anticipated available therefrom.
(h) The Subscriber qualifies as an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act).
(i) The Subscriber understands that there a legend, concerning the securities law restrictions on transfer of the Class G Units, will be any market for resale placed on a certificate, if any, representing the Class G Units.
(j) Upon issuance, the Class G Units will be registered only in the name of the Tokens, and such securities will not be freely transferable at any timeSubscriber.
n. (k) The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result rely upon the Company or the Company’s legal advisors for advice with respect to any tax consequences related to the ownership, purchase or disposition of the Class G Units and assumes full responsibility for all such consequences as to the preparation and filing of all tax returns and elections which may and must be filed in connection with the Class G Units.
(l) Neither the Subscriber nor any of its directors, executive officers, other officers that may serve as a violation director or officer of state law any company in which it invests, general partners or its charter managing members is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (“Disqualification Events”), except for Disqualification Events covered by Rule 506(d)(2)(ii) or other organizational documents, such entity has full power (iii) under the Securities Act and authority disclosed in writing in reasonable detail to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract
Samples: Subscription and Joinder Agreement (ITHAX Acquisition Corp.)
Representations and Warranties of the Subscriber. 2.1. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, covenants with the Company Corporation as follows:
a. The Subscriber acknowledges and understands: (i) The Subscriber is purchasing the Subscription Shares for its own account and not on behalf of any other person, group or entity, the Subscriber is aware and acknowledges that the Tokens offered pursuant to the Memorandum Subscription Shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and will may not be offered or sold unless the Subscription Shares are registered under the Securities Act or any state securities laws; an exemption from the registration requirements of the Securities Act is available;
(ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, Corporation concerning the Offering, the Tokens, the Offering Documents Corporation and the Company’s objectives Subscription Shares, and all such questions questions, if any, have been answered to the full satisfaction of the Subscriber;
(iii) No person or entity other than the Subscriber and its Advisors, if any.a general partner or limited partner of the Subscriber has any rights in and to the Subscription Shares or any right to acquire the Subscription Shares;
g. (iv) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience expertise in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s involved in an investment in the Tokens Subscription Shares; and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is financially able to bear the economic risk of the investment in the Subscription Shares, including a total loss of such risks, and has determined that the Tokens are a suitable investment for the Subscriber.investment;
k. (v) The Subscriber is not relying on purchasing the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not Subscription Shares with a view to resale distribution, and has no present intention of dividing or distribution thereofallowing others to participate in the investment or of reselling, or otherwise participating directly or indirectly, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part a distribution of the Tokens Subscription Shares, and the Subscriber has no plans to enter into shall not make any such agreement sale, transfer or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered pledge thereof without registration under the Securities Act and any applicable securities laws of any state or unless an exemption from registration is available;
(vi) The Subscriber understands that the Subscription Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws or an exemption from such registration and that the Corporation is available. It is not anticipated that there will be any market for resale relying upon the truth and accuracy of the Tokensrepresentations, warranties, agreements, acknowledgments and understandings of the Subscriber set forth herein in order to determine the applicability of such securities will not be freely transferable at any time.exemptions and the suitability of Subscriber to acquire the Subscription Shares;
n. (vii) The Subscriber has adequate means expressly acknowledges and agrees that the Corporation is relying upon the Purchaser's representations contained in this Agreement; and
(viii) The Subscriber expressly agrees that Subscriber shall not initiate a suit or cause of providing action against Corporation for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment the Corporation's failure to obtain additional financing in the Tokens for an indefinite period form of time.
o. The Subscriber: (i) if Series C Convertible Preferred Stock; provided, however, the foregoing shall not bar Subscriber from -------- ------- bringing such suit as a natural person, represents that result of fraudulent acts on the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws part of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCorporation.
Appears in 1 contract
Representations and Warranties of the Subscriber. 2.1. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, covenants with the Company Corporation as follows:
a. The Subscriber acknowledges and understands: (i) The Subscriber is purchasing the Subscription Shares for its own account and not on behalf of any other person, group or entity, the Subscriber is aware and acknowledges that the Tokens offered pursuant to the Memorandum Subscription Shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and will may not be offered or sold unless the Subscription Shares are registered under the Securities Act or any state securities laws; an exemption from the registration requirements of the Securities Act is available;
(ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, Corporation concerning the Offering, the Tokens, the Offering Documents Corporation and the Company’s objectives Subscription Shares, and all such questions questions, if any, have been answered to the full satisfaction of the Subscriber;
(iii) No person or entity other than the Subscriber and its Advisors, if any.a general partner or limited partner of the Subscriber has any rights in and to the Subscription Shares or any right to acquire the Subscription Shares;
g. (iv) The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience expertise in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate evaluating the merits and risks of the Subscriber’s involved in an investment in the Tokens Subscription Shares; and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is financially able to bear the economic risk of the investment in the Subscription Shares, including a total loss of such risks, and has determined that the Tokens are a suitable investment for the Subscriber.investment;
k. (v) The Subscriber is not relying on purchasing the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not Subscription Shares with a view to resale distribution, and has no present intention of dividing or distribution thereofallowing others to participate in the investment or of reselling, or otherwise participating directly or indirectly, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part a distribution of the Tokens Subscription Shares, and the Subscriber has no plans to enter into shall not make any such agreement sale, transfer or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered pledge thereof without registration under the Securities Act and any applicable securities laws of any state or unless an exemption from registration is available,
(vi) The Subscriber understands that the Subscription Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws or an exemption from such registration and that the Corporation is available. It is not anticipated that there will be any market for resale relying upon the truth and accuracy of the Tokensrepresentations, warranties, agreements, acknowledgments and understandings of the Subscriber set forth herein in order to determine the applicability of such securities will not be freely transferable at any time.exemptions and the suitability of Subscriber to acquire the Subscription Shares;
n. (vii) The Subscriber has adequate means expressly acknowledges and agrees that the Corporation is relying upon the Purchaser's representations contained in this Agreement; and
(viii) The Subscriber expressly agrees that Subscriber shall not initiate a suit or cause of providing action against Corporation for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment the Corporation's failure to obtain additional financing in the Tokens for an indefinite period form of time.
o. The Subscriber: (i) if a natural personSeries C Convertible Preferred Stock; provided, represents that however, the foregoing shall not bar the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out from bringing such -------- ------- suit as a result of fraudulent acts on the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws part of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCorporation.
Appears in 1 contract
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees with, warranties will survive the Company as followsClosing) that:
a. The (a) the Subscriber acknowledges and understands: is resident in the jurisdiction set out on page ii of this Agreement;
(b) if the Subscriber is resident outside of the U.S. or Canada:
(i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Common Shares,
(ii) the Subscriber is intended acquiring the Common Shares pursuant to be exempt exemptions from registration prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to acquire the Common Shares under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements Applicable Laws of the Subscriber contained in this Subscription Agreement; and International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction Applicable Laws of the Subscriber authorities in the International Jurisdiction do not require the Issuer to make any filings or receiver seek any approvals of any kind from any securities regulator in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Tokens.Common Shares,
b. Prior to (iv) the execution acquisition of this Subscription Agreement, the Common Shares by the Subscriber does not trigger:
(A) any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase, in the Subscriber’s attorneyInternational Jurisdiction, accountantor
(B) any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, purchaser representative and/or tax advisorand
(v) the Subscriber will, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv), above, to the satisfaction of the Issuer, acting reasonably;
(c) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(d) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(e) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and enforceable against the Subscriber in accordance with its Advisors, if any.terms;
g. The (f) the Subscriber has received and carefully read this Agreement;
(g) the Subscriber acknowledges receipt of a copy of the unanimous shareholder agreement of the Issuer and acknowledges that it is a condition of becoming a shareholder of the Issuer that the Subscriber must become a party to such unanimous shareholder agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including the possible loss of the entire investment;
(i) the Subscriber is not reproducedaware of any advertisement of any of the Common Shares and is not acquiring the Common Shares as a result of any form of general solicitation or general advertising, duplicated or delivered this Subscription Agreement the Offering Documents including advertisements, articles, notices or other related documents communications published in any newspaper, magazine or information to similar media, or broadcast over radio or television, or any other person, except to seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(j) the Subscriber’s Advisors, if any.
h. In evaluating the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Common Shares and the Subscriber has Issuer and agrees that the Issuer will not relied upon be responsible in any representation or other information (oral or written) other than as stated way for the Subscriber’s decision to invest in the Offering Documents or as contained in documents so furnished Common Shares and the Issuer;
(k) no person has made to the Subscriber any written or its Advisors, if any, by the Company in writing.oral representations:
i. The Subscriber has taken no action which would give rise to any claim by (i) that any person for brokerage commissionswill resell or repurchase any of the Common Shares,
(ii) that any person will refund the purchase price of any of the Common Shares, finders’ fees or
(iii) as to the future price or value of any of the like relating Common Shares; and
(l) there is no person acting or purporting to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it act in connection with the Offering to evaluate the merits and risks for or on behalf of the SubscriberSubscriber who is entitled to any brokerage or finder’s investment fee payable by the Issuer. If any such person establishes a claim that any fee or other compensation is payable by the Issuer in connection with this subscription for the Tokens Common Shares, the Subscriber covenants to indemnify and has obtained, in hold harmless the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision Issuer with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, thereto and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment all costs reasonably incurred in the Tokensdefence thereof.
6.2 In this Agreement, the term “U.S. Person” has the meaning ascribed thereto in Regulation S, and for the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part purpose of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriberthis Agreement includes: (i) if a natural person, represents that any person in the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofUnited States; (ii) if a corporation, partnership, any natural person resident in the United States; (iii) any partnership or limited liability company corporation organized or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing incorporated under the laws of the state United States; (iv) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of its organizationinvesting in securities not registered under the 1933 Act, the consummation of the transactions contemplated hereby unless it is authorized byorganized or incorporated, and will owned, by accredited investors who are not result in a violation natural persons, estates or trusts; or (v) any estate or trust of state law which any executor, administrator or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 1 contract
Samples: Private Placement Subscription Agreement (McEwen Mining Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Issuer, acknowledging that the Issuer will be relying upon such representations and agrees with, the Company warranties in entering into this Agreement as follows:
a. The (a) that the Subscriber acknowledges is resident in the province or jurisdiction indicated on the first page of this Agreement;
(b) that the Subscriber is purchasing the Securities as “principal” and understands: is an “accredited investor”, as those terms are used in National Instrument 45-106, and the Subscriber has completed Schedule “A” hereto;
(c) has no knowledge of a “material fact” or “material change”, as those terms are defined in the Canadian Applicable Laws, in the affairs of the Issuer that has not been generally disclosed to the public, save knowledge of this particular private placement (if not yet disclosed);
(d) is not purchasing the Securities as a result of an advertisement of the Securities in printed media of general and regular paid circulation, radio or television;
(e) has not received any written or oral representations:
(i) that any person will resell or repurchase the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; Securities;
(ii) that any person will refund the offering and sale purchase price of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and Securities;
(iii) as to the Tokens are subject to restrictions on transferability and resale under future price or value of the Securities; or
(iv) that the Securities Act will be listed and may not be transferred posted for trading on a stock exchange or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and application has been advised, that there will be no or very limited disclosure materials of any kind regarding any of made to list and post the Company’s investments provided to Securities for trading on a stock exchange other than the Subscriber by Exchange;
(f) has had the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and consult its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives own independent professional advisors with respect to the legal, tax, economic financial and related considerations tax consequences of purchasing the Securities;
(g) is capable of assessing and evaluating the risks and merits of an investment in the TokensSecurities as a result of the Subscriber’s financial, investment or business experience or as a result of advice received from a registered person other than the Issuer or an affiliate thereof, and the Subscriber is able to bear the economic loss of its investment;
(h) the Subscriber understands that the Issuer has relied not registered any of the Securities under the United States Securities Act of 1933 (the “1933 Act”) or the applicable laws of any other jurisdiction, in reliance on the advice of, or has consulted with, only its own Advisors, if any.
l. exemptions from registration. The Subscriber is acquiring further understands that such exemptions depend upon the Tokens solely for Subscriber’s investment intent at the time it acquires the Securities. The Subscriber therefore represents and warrants that it is purchasing the Securities for its own account for investment and investment, not with as a view nominee or agent, without any present intention to resale or distribution thereofdistribute, in whole or in part. The Subscriber has no agreement or arrangementassign, formal or informal, with any person to sell resell or transfer all the Securities in any manner with would result in a violation of Regulation S promulgated under the 1933 Act (“Regulation “S”) or any part other provision of United States securities laws. Except as specifically stated herein, no other person has a direct or indirect beneficial interest in the Tokens and Securities. Because the Securities are not registered, the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees is aware that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, hold them indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently they are registered under the Securities 1933 Act and applicable state securities laws or an exemption it must obtain exemptions from such registration is available. It registration.
(i) the Subscriber is not anticipated that there will a “U.S. Person” as defined by Regulation S and is not acquiring the Securities for the account or benefit of a U.S. Person. A “U.S. Person” is defined by Regulation S to be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriberperson who is: (i) if a any natural person, represents that person resident in the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereofUnited States; (ii) if a corporation, partnership, any partnership or limited liability company corporation organized or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing incorporated under the laws of the state United States; (iii) any estate of which any executor or administrator is a U.S. person; (iv) any trust of which any trustee is a U.S. person; (v) any agency or branch of a foreign entity located in the United States; (vi) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (viii) any partnership or corporation if: (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by a U.S. person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts;
(j) the Subscriber has had the opportunity to review all reports that the Issuer has filed with the U.S. Securities and Exchange Commission as a U.S. domestic issuer;
(k) to its organizationknowledge, the consummation Subscriber has not purchased the Securities as a result of any form of General Solicitation or General Advertising as these terms are defined in Regulation D under the 1933 Act. The solicitation of an offer to purchase the Securities was directly communicated to the Subscriber. At no time was the Subscriber presented with or solicited by or through any leaflet, public promotional meeting, circular, newspaper or magazine article, radio or television advertisement or any other form of general advertising in connection with such communicated offer;
(l) acknowledges that (i) no securities commission or similar regulatory authority has reviewed or passed on the merits of the transactions contemplated hereby Securities; (ii) there is authorized byno government or other insurance covering the Securities; (iii) there are risks associated with the purchase of the Securities; (iv) there are restrictions on the Subscriber’s (or beneficial purchaser’s, if applicable) ability to re-sell the Securities and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with them before selling the Securities; and (v) the Issuer has advised the Subscriber that the Issuer is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell securities through a person registered to sell securities under the Canadian Applicable Laws and, as a consequence of acquiring the Securities pursuant to an exemption, certain protections, rights and remedies provided by the Act, including statutory rights of rescission and damages, will not be available to the Subscriber;
(m) is not a “control person” of the Issuer as defined in the Canadian Applicable Laws, will not become a “control person” by virtue of this purchase of any of the Securities, and does not intend to act in concert with any other person to form a control group of the Issuer;
(n) the funds representing the aggregate subscription price in respect of the Securities which will be advanced by the Subscriber to the Issuer hereunder will not result represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) and the Subscriber acknowledges that the Issuer may in a violation the future be required by law to disclose the name of state law or its charter or the Subscriber and other organizational documents, such entity has full power and authority information relating to execute and deliver this Subscription Agreement and all other the subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the Subscriber’s knowledge (a) none of the subscription funds provided by the Subscriber (i) have been or will be derived directly or indirectly from or related agreements or certificates and to carry out any activity that is deemed criminal under the provisions hereof and thereof and to purchase and hold the Tokenslaws of Canada, the execution and delivery United States of this Subscription Agreement has been duly authorized by all necessary actionAmerica, this Subscription Agreement has been duly executed and delivered or any other jurisdiction, or (ii) are being tendered on behalf of such a person or entity and is a legalwho has not been identified to the Subscriber and, valid and binding obligation (b) the Subscriber will promptly notify the Issuer if it discovers that any of such entity; orrepresentations cease to be true, and to provide the Issuer with appropriate information in connection therewith.
Appears in 1 contract
Representations and Warranties of the Subscriber. 4.1 The Subscriber hereby acknowledges, represents represents, warrants and warrants tocovenants to and with the Issuer that, as at the date given above and agrees with, at the Company as followsClosing:
a. The Subscriber acknowledges (a) no prospectus has been filed by the Issuer with any of the Commissions in connection with the issuance of the Securities, such issuance is exempted from the prospectus requirements of the Acts and understands: that:
(i) that the Tokens offered pursuant to Subscriber is restricted from using most of the Memorandum have not been and will not be registered civil remedies available under the Securities Act or any state securities laws; Acts;
(ii) the Subscriber may not receive information that the offering and sale of the Tokens is intended would otherwise be required to be exempt from registration provided to him under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription AgreementActs; and and
(iii) the Tokens are subject to restrictions on transferability and resale Issuer is relieved from certain obligations that would otherwise apply under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of Acts;
(b) the Subscriber certifies that it is resident in British Columbia, Alberta or receiver Ontario or resident outside of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber Canada and the United States;
(c) the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any :
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”i) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s Purchased Securities as principal for its own assessment account and knowledge not for the benefit of the Company, its management, crypto-currencies and any other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of is deemed under the Company concerning, among other related matters, Acts to be purchasing the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than Purchased Securities as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risksprincipal, and has determined that in either case is purchasing the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account Purchased Securities for investment only and not with a view to the resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer of all or any part of the Tokens Purchased Securities; or
(ii) is purchasing as agent for a disclosed principal and is not deemed under the Acts to be purchasing the Purchased Securities as principal, and it is duly authorized to enter into this Agreement and to execute and deliver all documentation in connection with the purchase on behalf of such disclosed principal, who is purchasing as principal for its own account and not for the benefit of any other person and for investment only and not with a view to the resale or distribution of all or any of the Purchased Securities;
(d) the Subscriber has received a copy of the Offering Memorandum and has duly completed, signed and delivered to the Issuer two Form 45-103.F3 Risk Acknowledgements in the form attached as Appendix II hereto;
(e) the Subscriber, if not a resident of British Columbia, certifies that it is not resident in British Columbia and acknowledges that:
(i) no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;
(ii) there is no government or other insurance covering the Securities;
(iii) there are risks associated with the purchase of the Securities;
(iv) there are restrictions on the Subscriber's ability to resell the Securities and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with them before selling the Securities; and
(v) the Issuer has advised the Subscriber that the Issuer is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Securities through a person registered to sell securities under the Acts and, as a consequence of acquiring the Securities pursuant to this exemption, certain protections, rights and remedies provided by the Act, including statutory rights of rescission or damages, will not be available to the Subscriber;
(f) if the Subscriber is a resident of Alberta, the Subscriber is either:
(i) an Eligible Investor under Multilateral Instrument 45-103 and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment completed an Eligible Investor Status Certificate in the Tokens and, correspondinglyform set out in Appendix IV and an Accredited Investor Certificate in the form set out in Appendix V (if applicable); or
(ii) purchasing Purchased Securities having an aggregate acquisition cost which does not exceed $10,000;
(g) if the Subscriber is a resident of Ontario or is otherwise subject to the Ontario Act, the business objectives Subscriber is an "accredited investor" as defined in Rule 45-501, by virtue of the Companyfact that the Subscriber falls within one or more of the sub-paragraphs of the definition of "accredited investor" set out in Appendix III hereto (the Subscriber having initialled the applicable sub-paragraph(s);
(h) if the Subscriber is resident outside of Canada and the United States, the Subscriber:
(i) is knowledgeable of, or has been independently advised as to the applicable securities laws of the securities regulatory authorities (the "Authorities") having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the acquisition of the Securities, if any;
(ii) is purchasing the Purchased Securities pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable, the Subscriber is permitted to purchase the Purchased Securities under the applicable securities laws of the Authorities in the International Jurisdiction without the need to rely on any exemption; and
(iii) the applicable securities laws of the Authorities in the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Purchased Securities;
(i) to the best of the Subscriber's knowledge, the Units were not advertised;
(j) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Securities;
(ii) that any person will refund the purchase price of any of the Securities;
(iii) as to the future price or value of any of the Securities; or
(iv) that any of the Securities will be listed and posted for trading on a stock exchange or that application has been made to list and post the any of the Securities for trading on a stock exchange, other than the listing of the FT Shares and the Warrant Shares on the Exchange;
(k) the Subscriber is not a "control person" of the Issuer as defined in the Acts, will not become a "control person" by virtue of the purchase of the Purchased Securities, and does not intend to act in concert with any other person to form a control group of the Issuer;
(l) this subscription has not been solicited in any other manner contrary to the Acts or the 1933 Act;
(m) the Subscriber acknowledges that the Securities have not been registered under the 1933 Act or the securities laws of any state of the United States, and such securities must be held indefinitely because the Tokens and may not be sold, hypothecated offered or otherwise disposed of sold unless subsequently registered under the Securities 1933 Act and applicable state the securities laws of all applicable states of the United States or an exemption from such registration requirements is available. It , and that the Issuer has no obligation or present intention of filing a registration statement under the 1933 Act in respect of the any of the Securities;
(n) the Purchased Securities are not being acquired directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States and the Subscriber does not have any agreement or understanding (either written or oral) with any U.S. Person of a person in the United States respecting:
(i) the transfer or assignment of any rights or interest in any of the Securities;
(ii) the division of profits, losses, fees, commissions, or any financial stake in connection with this subscription; or
(iii) the voting of the FT Shares or the Warrant Shares;
(o) the current structure of this transaction and all transactions and activities contemplated hereunder is not anticipated that there will be any market for resale a scheme to avoid the registration requirements of the Tokens, 1993 Act;
(p) it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons;
(q) the Subscriber acknowledges and such securities agrees that the offer to purchase the Purchased Securities was not made to the Subscriber when the Subscriber was in the United States and that:
(i) the Subscriber is not a U.S. Person;
(ii) the Subscriber is not and will not be freely transferable at purchasing the Purchased Securities for the account or benefit of any time.U.S. Person;
n. The (iii) the Subscriber has adequate means will not engage in any Directed Selling Efforts in respect of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity the Securities;
(iv) the Subscriber agrees not to engage in hedging transactions with regard to the Securities except in compliance with the 1933 Act; and
(v) the Issuer shall refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or pursuant to an available exemption from its investment in registration under the Tokens for an indefinite period of time.1933 Act;
o. The Subscriber: (ir) if a natural person, represents that the Subscriber has full power no knowledge of a "material fact" or "material change" (as those terms are defined in the Acts) in the affairs of the Issuer that has not been generally disclosed to the public, save knowledge of this particular transaction;
(s) the Subscriber's decision to tender this offer and authority purchase the Purchased Securities has not been made as a result of any verbal or written representation as to execute fact or otherwise made by or on behalf of the Issuer, or any other person and deliver is based entirely upon currently available public information concerning the Issuer and the information contained in this Subscription Agreement and all other related agreements the Offering Memorandum;
(t) the offer made by this subscription is irrevocable and requires acceptance by the Issuer and approval of the Exchange;
(u) the Issuer will have the right to accept this subscription offer in whole or certificates in part and the acceptance of this subscription offer will be conditional upon the sale of the Purchased Securities to the Subscriber being exempt from the prospectus requirements of the relevant securities legislation;
(v) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to carry out take all actions required pursuant hereto and, if an individual is of full age of majority, and if the provisions hereof and thereof; (ii) if Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity corporation it is duly organized, incorporated and validly existing and in good standing subsisting under the laws of its jurisdiction of incorporation, and all necessary approvals by its directors, shareholders and others have been given to authorize the state execution of its organization, this Agreement on behalf of the consummation Subscriber;
(w) the entering into of this Agreement and the transactions contemplated hereby is authorized by, and will not result in a the violation of state any of the terms and provisions of any law applicable to, or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokensconstating documents of, the execution and delivery Subscriber or of any agreement, written or oral, to which the Subscriber may be a part or by which he is or may be bound;
(x) this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity by the Subscriber and is constitutes a legal, valid and binding obligation of the Subscriber enforceable against the Subscriber;
(y) the Subscriber has been independently advised as to the applicable hold periods imposed in respect of the Securities by applicable securities legislation and regulatory policies and confirms that no representations by the Issuer have been made respecting the hold periods applicable to the Securities and is aware of the risks and other characteristics of the Securities and of the fact that the Subscriber may not be able to resell the Securities purchased by it except in accordance with the applicable securities legislation and regulatory policies and that the Securities may be subject to resale restrictions and may bear a legend to this effect;
(z) the Subscriber, and any beneficial purchaser for whom the Subscriber is acting, is resident in the province or jurisdiction set out on the cover page of this Agreement;
(aa) if required by applicable securities legislation, policy or order or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Issuer in filing such entityreports, undertakings and other documents with respect to the issue of the Securities as may be required;
(bb) the Subscriber has not purchased the Purchased Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communication published in any newspaper, magazine or similar media or broadcast over radio, television or internet or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(cc) the Subscriber has been advised to consult its own legal advisors with respect to resale restrictions applicable to the Securities and the Subscriber is solely responsible (and the Issuer is not responsible) for compliance with applicable resale restrictions;
(dd) this Subscription Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Subscriber;
(ee) the Subscriber, or, where it is not purchasing as principal, each beneficial purchaser, has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and is able to bear the economic risk of loss of its investment;
(ff) the Subscriber, if a corporation, has previously filed with the Exchange a Form 4C, Corporate Placee Registration Form, and represents and warrants that there has been no change to any of the information in the Corporate Placee Registration Form previously filed with the Exchange up to the date of this Agreement, or will deliver a completed Form 4C, Corporate Placee Registration Form in the form attached hereto as Appendix I to the Issuer for filing with the Exchange in accordance with Section 6.2 hereof; orand
(gg) the Subscriber agrees that the above representations, warranties and covenants in this subsection will be true and correct both as of the execution of this subscription and as of the day of Closing.
4.2 The foregoing representations, warranties and covenants will survive the Closing and are made by the Subscriber with the intent that they be relied upon by the Issuer in determining its suitability as a purchaser of Units, and the Subscriber hereby agrees to indemnify the Issuer against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur as a result of reliance thereon. The Subscriber undertakes to notify the Issuer immediately of any change in any representation, warranty or other information relating to the Subscriber set forth herein which takes place prior to the Closing.
Appears in 1 contract
Samples: Flow Through Subscription Agreement (Amador Gold Corp)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, warrants and represents and warrants to, and agrees with, to the Company as follows:
a. (a) The Subscriber acknowledges has received, has thoroughly read, is familiar with and understands: understands the contents of the Proxy Statement of RCH Holdings, a copy of which is enclosed herewith as Appendix A (itogether with all exhibits and attachments, the "Proxy Statement") concerning the Reorganization and Recapitalization, RCH Holdings and ARC Holdings, and the risks associated with the Shares.
(b) The Subscriber has received, has thoroughly read, is familiar with and understands the contents of the Stockholders' Agreement including, without limitation, the restrictions on transfer of the Shares and the drag-along rights relating to the Shares contained therein.
(c) The Subscriber has no need for liquidity in his or her investment in the Shares and is able to bear the risk of that investment for an indefinite period. The Subscriber understands that there presently is no public market for the Shares and none is anticipated to develop in the foreseeable future. The Subscriber's present financial condition is such that the Tokens offered pursuant Subscriber is under no present or contemplated future need to dispose of any portion of the Memorandum Shares subscribed for hereby to satisfy any existing or contemplated undertaking, need or indebtedness. The Subscriber's overall commitment to investments which are not readily marketable is not disproportionate to his or her net worth and the investment in the Company will not cause such overall commitment to become excessive. The Subscriber's investment in the Shares does not exceed 20% of the Subscriber's net worth (or, if applicable, the joint net worth of the Subscriber and the Subscriber's spouse).
(d) The Shares have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any state securities act other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources than those state securities acts that the Company believes to be reliable, however require registration of the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understandsShares thereunder, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying being sold on the Company or any basis of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered exemptions from registration under the Securities Act and applicable state securities laws or an exemption from such acts, except those state securities acts that require registration is available. It is not anticipated that there will be any market for resale of the TokensShares thereunder. Reliance on such exemptions, where applicable, is predicated in part on the accuracy of the Subscriber's representations and such securities warranties set forth herein. The Subscriber acknowledges and hereby agrees that the Shares will not be freely transferable at under any time.
n. The circumstances unless the Subscriber has adequate means of providing for either registers his or her Shares in accordance with federal and state securities laws or finds and complies with an exemption under such Subscriber’s current financial needs and foreseeable contingencies and has laws. Accordingly, the Subscriber hereby acknowledges that there can be no need for liquidity from its assurance that the Subscriber will be able to liquidate his investment in the Tokens for an indefinite period of time.
o. Company. The Subscriber: (i) if a natural person, represents Subscriber understands that the Subscriber has full power and authority Company is under no obligation to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out register the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing Shares under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law Securities Act or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orcomply with any applicable
Appears in 1 contract
Samples: Subscription Agreement (Allied Riser Communications Corp)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. (a) Subscriber is acquiring the Shares for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act, and applicable state securities laws.
(b) The Subscriber acknowledges and understands: understands that (iA) that the Tokens offered pursuant to the Memorandum Shares (1) have not been and will not be registered under the Securities Act or any state securities laws; , (2) will be issued in reliance upon an exemption from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) and/or Regulation D thereof and (3) will be issued in reliance upon exemptions from the registration and prospectus delivery requirements of state securities laws which relate to private offerings, and (B) the Subscriber must therefore bear the economic risk of such investment indefinitely unless a subsequent disposition thereof is registered under the Securities Act and applicable state securities laws or is exempt therefrom. Subscriber further understands that such exemptions depend upon, among other things, the bona fide nature of the investment intent of the Subscriber expressed herein. Pursuant to the foregoing, the Subscriber acknowledges that the certificates representing the Shares shall bear a restrictive legend substantially as follows: "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER THE APPLICABLE SECURITIES LAWS OR (II) AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL ARE BOTH REASONABLY SATISFACTORY TO THE COMPANY, HAS BEEN DELIVERED TO THE COMPANY AND SUCH OPINION STATES THAT THE SHARES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION."
(c) The Subscriber has knowledge, skill and experience in financial, business and investment matters relating to an investment of this type and is capable of evaluating the merits and risks of such investment and protecting the Subscriber's interest in connection with the acquisition of the Shares. The Subscriber understands that the acquisition of the Shares is a speculative investment and involves substantial risks and that the Subscriber could lose the Subscriber's entire investment in the Shares. To the extent deemed necessary by the Subscriber, the Subscriber has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of purchasing and owning the Shares. The Subscriber has the ability to bear the economic risks of the Subscriber's investment in the Company, including a complete loss of the investment, and the Subscriber has no need for liquidity in such investment.
(d) The Subscriber has been furnished by the Company all information (or provided access to all information) regarding the business and financial condition of the Company, its expected plans for future business activities, the attributes of the Shares and the merits and risks of an investment in the Shares which the Subscriber has requested or otherwise need to evaluate the investment in the Company.
(e) Subscriber is in receipt of and has carefully read and understands the following items:
(i) Annual Report on Form 10-K for the period ending December 31, 2002, filed by the Company with the Securities and Exchange Commission on March 31, 2003
(ii) Quarterly Reports on Form 10-Q for each of the periods ending March 31, 2003 and June 30, 2003, filed by the Company with the Securities and Exchange Commission on May 15, 2003 and August 13, 2003, respectively
(iii) Definitive Proxy Statement on Form 14A, filed by the Company with the Securities and Exchange Commission on August 25, 2003;
(iv) Current Reports on Form 8-K filed by the Company with the Securities and Exchange Commission on April 9, 2003, June 6, 2003, October 15, 2003 and October 16, 2003; and
(v) Term sheet with respect to a proposed transaction with Schlumberger.
(f) In making the proposed investment decision, the Subscriber is relying solely on investigations made by the Subscriber and the Subscriber's representatives. The offer to sell the Shares was communicated to the Subscriber in such a manner that the offering Subscriber was able to ask questions of and sale receive answers from the management of the Tokens Company concerning the terms and conditions of the proposed transaction and that at no time was the Subscriber presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general or public advertising or solicitation.
(g) The Subscriber acknowledges that the Subscriber has been advised that:
(i) The Shares offered hereby have not been approved or disapproved by the SEC or any state securities commission nor has the SEC or any state securities commission passed upon the accuracy or adequacy of any representations by the Company. Any representation to the contrary is intended a criminal offense.
(ii) In making an investment decision, the Subscriber must rely on its own examination of the Company and the terms of the Offering, including the merits and risks involved. The Shares have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of any representation. Any representation to be exempt from registration the contrary is a criminal offense.
(iii) The Shares are "Restricted Securities" within the meaning of Rule 144 under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws laws, pursuant to registration or an exemption from such registration is availabletherefrom. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means is aware that the Subscriber may be required to bear the financial risks of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its this investment in the Tokens for an indefinite period of time.
o. (h) The Subscriber: Subscriber acknowledges and is aware that there has never been any representation, guarantee or warranty made by the Company or any officer, director, employee or agent or representative of the Company, expressly or by implication, as to (i) if a natural person, represents the approximate or exact length of time that the Subscriber has full power and authority will be required to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out remain an owner of the provisions hereof and thereofShares; (ii) the percentage of profit and/or amount of or type of consideration, profit or loss to be realized, if any, as a corporation, partnershipresult of this investment; or (iii) that the limited past performance or experience on the part of the Company, or limited liability company any future expectations will in any way indicate the predictable results of the ownership of the Shares or partnership, or association, joint stock company, trust, unincorporated organization or of the overall financial performance of the Company.
(i) The Subscriber agrees to furnish the Company such other entity, information as the Company may reasonably request in order to verify the accuracy of the information contained herein and agrees to notify the Company immediately of any material change in the information provided herein that occurs prior to the Company's acceptance of this Agreement.
(j) The Subscriber further represents and warrants that such entity was not formed for the specific purpose Subscriber is an "accredited investor" within the meaning of acquiring the Tokens, such entity is duly organized, validly existing and in good standing Rule 501 of Regulation D under the laws Securities Act, and Subscriber has executed the Certificate of Accredited Investor Status, attached hereto as Exhibit B.
(k) As of the state date of this Agreement the Subscriber and its organizationaffiliates do not have, and during the 30 day period prior to the date of this Agreement the Subscriber and its affiliates have not entered into, any "put equivalent position" as such term is defined in Rule 16a-1 of under the Exchange Act or short sale positions with respect to the Common Stock of the Company. Until the registration statement referred to in Section 4(c) is declared effective, the consummation of the transactions contemplated Subscriber hereby is authorized byagrees not to, and will cause its affiliates not result to, enter into any such "put equivalent position" or short sale position. The foregoing representations and warranties and undertakings are made by the Subscriber with the intent that they be relied upon in a violation determining its suitability as an investor and the Subscriber hereby agrees that such representations and warranties shall survive its purchase of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orShares.
Appears in 1 contract
Samples: Subscription and Registration Rights Agreement (Gasco Energy Inc)
Representations and Warranties of the Subscriber. The To induce the Company to accept this Subscription Agreement, the Subscriber hereby acknowledges, represents and warrants to, and agrees covenants with, the Company as follows:
a. (a) The Subscriber is familiar with the business operations and financial affairs of the Company and acknowledges that the Company files periodic reports with the Securities and understandsExchange Commission ("SEC"), which reports are generally available to the public. The Subscriber shall use commercially reasonable efforts" to cause the Company to continue to file with the SEC all reports and filings required by the Securities Exchange Act of 1934, as amended, including, without limitation, a Form 10-KSB due on March 31, 2003 and Form 8-K due within 15 days of the consummation of the transaction contemplated hereby. The Subscriber has been given reasonable opportunity to ask questions of, and receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares, the business prospects and financial condition of the Company, and to obtain any additional information required by the Subscriber, to the extent available. As of the date hereof, the Subscriber has received from the Company all the information that the Subscriber has requested and considers necessary or appropriate for deciding whether to purchase the Shares.
(b) The Subscriber believes that the purchase of the Shares and an investment in the Company are suitable for the Subscriber based upon the Subscriber's investment objectives and financial needs. The Subscriber:
(i) has adequate means of providing for the Subscriber's current financial needs and personal contingencies; (ii) has no need for liquidity in this investment; (iii) can afford a complete loss of such investment; and (iv) does not have an overall commitment to investments which are not readily marketable that is disproportionate to the Subscriber's net worth, and the Subscriber's investment in the Shares will not cause such overall commitment to become excessive.
(c) The Subscriber, in reaching a decision to subscribe for the Shares, has knowledge and experience in financial and business matters, is capable of reading and interpreting financial statements and evaluating the merits and risk of an investment in the Shares, and has the net worth to undertake such risks.
(d) The Subscriber was not offered or sold the Shares, directly or indirectly, by means of any form of general advertising or general solicitation, including, but not limited to: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act any advertisement, article, notice or other communication published in any state securities lawsnewspaper, magazine, or similar medium or broadcast over television or radio; or (ii) any seminar or meeting whose attendees had been invited by any general solicitation or general advertising;
(e) The Subscriber has obtained, to the extent the Subscriber deems necessary, the Subscriber's own personal professional advice with respect to the risks inherent in an investment in the Shares and the suitability of an investment in the Shares in light of the Subscriber's financial condition and investment needs.
(f) The representations made by the Subscriber herein are true, complete and correct in all respects as of the date hereof. The Subscriber understands that the offering Company's determination that exemptions from the registration and qualification provisions of the ("Act"), and applicable state securities laws exist for the offer and sale of the Tokens Shares is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties warranties, agreements and agreements statements made by the Subscriber herein.
(g) The Subscriber acknowledges that the Shares have not been registered under the Act or qualified under any applicable state securities laws or regulations and that the Shares are being offered in reliance upon exemptions from the registration requirements of the Act and such laws and regulations. The Subscriber contained in this Subscription Agreement; and (iii) understands that the Tokens Shares are subject to restrictions on transferability and resale "restricted securities" under the Securities Act and that, as such, the Shares may not be transferred or resold except as permitted without registration under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an applicable exemption from such registration therefrom. The Subscriber understands that the Company has no obligation to register the Shares. The Subscriber acknowledges that the certificate or certificates evidencing the Shares will bear a legend, generally in the form provided in Section 5(j) hereof, indicating that the Shares are subject to restrictions on resale under the Act and applicable state securities laws and regulations.
(h) Xxxxxx is available. It is not anticipated that there will be any market for resale the sole member of the TokensSubscriber and is an "accredited investor" within the meaning of Rule 501(a) of Regulation D as promulgated under the Act.
(i) The Subscriber is an "accredited investor" within the meaning of Rule 501(a) of Regulation D as promulgated under the Act.
(j) The Subscriber is purchasing the Shares solely for the Subscriber's own account, for investment only, and such securities will the Shares are not be freely transferable at being purchased for the account of any time.
n. other person or entity and not with a view to or for sale in connection with any distribution of all or any part of the Shares. The Subscriber has adequate means no contract, undertaking, agreement or arrangement with any person or entity to sell, distribute, pledge or transfer to any person or entity all or any portion of providing for such Subscriber’s current financial needs the Shares, and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full no present plan to enter into any such contract, undertaking, agreement or arrangement.
(k) The Subscriber has the power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of consummate the transactions contemplated hereby hereby. This Subscription Agreement constitutes the valid and binding obligation of the Subscriber, enforceable in accordance with its terms.
(l) The Subscriber is authorized not a party to, bound or affected by or subject to any indenture, mortgage, lease, agreement, instrument, statute, regulation, order, judgment, decree or law which would be violated, contravened or breached by, and will not or under which any default would occur, as a result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf or the consummation of such entity and is a legal, valid and binding obligation any of such entity; orthe transactions provided for herein.
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants toto the Company, and agrees withas of the Effective Date, the Company as follows:
a. The (a) the Subscriber acknowledges is an "Accredited Investor" as such term is defined in Rule 501 of Regulation D, and understandsis familiar with the character, integrity and business acumen of the principals of the Company;
(b) the Subscriber: (iA) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreementinvestment; and (iiiB) is able to bear the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens Shares for an indefinite period of time., and could afford to lose the entire amount of such investment;
o. The Subscriber(c) the Subscriber understands and acknowledges that a purchaser of the Shares must be prepared to bear the economic risk of such investment for an indefinite period because of: (A) the heightened nature of the risks associated with an investment in the Company due to its status as a development stage company; (B) illiquidity of the Shares due to the fact that the Shares have not been registered under the Securities Act of 1933, as amended, or any of the rules and regulations promulgated thereunder (collectively, the "Act") or any state securities act (nor passed upon by the SEC or any state securities commission), and the Shares have not been registered or qualified by the Subscriber under federal or state securities laws solely in reliance upon an available exemption from such registration or qualification, and hence such Shares cannot be sold unless they are subsequently so registered or qualified, or are otherwise subject to any applicable exemption from such registration requirements; and (C) substantial restrictions on the transfer of the Shares, as set forth in, among other documents, this Agreement, and by legend on the face or reverse side of every certificate evidencing the ownership of any Shares;
(d) the Subscriber understands and acknowledges that an investment in the Shares is speculative in nature, and involves certain risks;
(e) the Subscriber is not a member of the National Association of Securities Dealers, or of any other self-regulatory agency which would require approval prior to any purchase of the Shares;
(f) the Subscriber is acquiring the Shares for its own investment, and not with a view toward the subdivision, resale, distribution, or fractionalization thereof; the Subscriber has no contract, undertaking, arrangement or obligation with or to any person to sell, transfer, or otherwise dispose of the Shares (or any portion thereof hereby subscribed for), and has no present intention to enter into any such contract, undertaking, agreement or arrangement;
(g) the offering of Shares was made only through direct, personal communication between the Subscriber (or a representative thereof) and the Company; the subscription for Shares by the Subscriber is not the result of any form of general solicitation or general advertising including, but not limited to, the following: (i) if a natural personany advertisement, represents that article, notice or other communication published in any newspaper, magazine, or other written communication, or broadcast over television, radio or any other medium; or (ii) any seminar or meeting to which the attendees had been invited by any general solicitation or general advertising;
(h) the Subscriber has full power been advised to consult with an attorney regarding legal matters concerning the purchase and authority to execute ownership of the Shares, and deliver this Subscription Agreement and all other related agreements or certificates and to carry out with a tax advisor regarding the provisions hereof and thereof; tax consequences of purchasing such Shares;
(iii) if the Subscriber is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity corporation which was not formed organized for the specific purpose of acquiring the TokensShares and has other investments or business activities besides investing in the Company; and
(j) this Agreement, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly once executed and delivered on behalf of such entity and is a legalto the Company by the Subscriber, constitutes the valid and legally binding obligation of the Subscriber, enforceable against such entity; orSubscriber in accordance with its terms.
Appears in 1 contract
Samples: Debt Conversion Agreement (Hienergy Technologies Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to PPO Units, the Memorandum Common Stock and Warrants included in the PPO Units and the Warrant Shares (collectively, the “Securities”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Securities. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that no public market now exists, and there may never be a public market for, the Units and/or Warrants, that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering. The Subscriber further acknowledges that the Company filed “Form 10 Information” (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company on May 14, 2010.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that he is purchasing the PPO Units notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including its financial results for its current fiscal quarter.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement, assuming due execution by the parties hereto, constitutes valid and legally binding obligations of the Subscriber, enforceable in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Agreement;
(ii) The Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Securities pursuant to registration of the Securities under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensSecurities prior to the expiration of a period of one year after the date of transfer of the Securities under this Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Securities prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Securities, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.
i. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors in securities of the Company.
j. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Securities and could afford complete loss of timesuch investment.
o. k. The Subscriber: (i) if Subscriber is not subscribing for Securities as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
l. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company and the Agent as follows:
a. The Subscriber acknowledges All documents, records and understands: (i) books pertaining to this investment that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or have been made available for inspection by him/her/it, his/her/its Advisors, if any, and understand the information contained therein. The attorney and/or his/her/its accountant;
b. Subscriber is satisfied that it has received adequate information with respect to all matters which it or and/or his/her/its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, advisor(s) have had a reasonable opportunity to ask questions of of, and receive answers from from, a person or persons acting on behalf of the Company concerningconcerning the offering of the Units, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber;
c. Subscriber is not subscribing for the Units as a result of, or subsequent to, any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or on the Internet or broadcast over television, radio or the Internet, any seminar or meeting, any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally or any general solicitation whatsoever;
d. The Subscriber was offered and its Advisors, if anysold the Units while in the United States.
g. e. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement initially became aware of the Offering Documents as a result of being contacted directly by the Agent or other related documents or information to an executive officer of the Company, and in particular, not through any other press release issued by the Company.
f. If the Subscriber is a natural person, except to the Subscriber has reached the age of majority in the state in which the Subscriber resides, has adequate means of providing for the Subscriber’s Advisorscurrent needs and personal contingencies, if any.
h. In evaluating is able to bear the suitability substantial economic risks of an investment in the CompanyUnits and, at the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisorspresent time, if any, by the Company in writing.could afford a complete loss of such investment;
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The g. Subscriber, either alone or together with and/or his/her/its Advisors, if anyadvisors, has sufficient such knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing matters so as to enable him/her/it to utilize the information made available to him/her/it in connection with the Offering offering of the Units in order to evaluate the merits and risks of the Subscriber’s an investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment Units and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.;
k. The h. Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, tax and other economic and related considerations of an investment in the TokensSubscriber relating to this investment. In regard to such considerations, and the Subscriber has relied on the advice of, or has consulted with, only his/her/its own Advisors, if any.advisors;
l. The i. Subscriber is acquiring the Tokens Units solely for Subscriber’s his/her/its own account as principal, for investment purposes only and not with a view to the resale or distribution thereof, in whole or in part. The part in violation of applicable securities laws, and no other person has a direct or indirect beneficial interest in such Units;
j. Subscriber has no agreement or arrangement, formal or informal, with any person to will not sell or otherwise transfer all the Units, the Shares, the Warrants or any part of the Tokens Warrant Shares without registration under the Securities Act or an exemption therefrom, and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber fully understands and agrees that it must bear such securities have not been registered under the substantial economic risks of its investment in the Tokens Securities Act or under any state securities laws and, correspondinglytherefore, the business objectives of the Company, indefinitely because the Tokens may cannot be soldresold, hypothecated pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under the applicable state securities laws of such states or unless an exemption from such registration is available;
k. Subscriber understands that any certificate evidencing the Units, the Shares, Warrants and the Warrant Shares, will bear a legend reflecting the transfer restrictions imposed thereon and that a notation may be made in the records of the Company restricting the transfer of any Units, Shares, Warrants or Warrant Shares in a manner consistent with the foregoing, such legend to be substantially similar to the following: THE SECURITIES [AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE. It THESE SECURITIES HAVE BEEN ACQUIRED BY THE HOLDER THEREOF FOR INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, AND COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO COUNSEL FOR THE CORPORATION THAT THE TRANSACTION WILL NOT RESULT IN A VIOLATION OF UNITED STATES FEDERAL OR STATE SECURITIES LAWS. Until such time as it is not anticipated no longer required under the applicable Canadian securities laws and the rules of the TSX Exchange, certificates representing the Units, including the Shares, Warrants and the Warrant Shares, shall bear the following additional legend: WITHOUT PRIOR WRITTEN APPROVAL OF THE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL [A DATE WHICH IS 4 MONTHS1 PLUS ONE DAY FROM THE CLOSING DATE].
l. Subscriber is fully aware and understand that there the Units, the Shares, the Warrants and the Warrant Shares, will be any market issued as restricted securities which can only be sold pursuant to Rule 144 promulgated under the Securities Act after the applicable holding period has run; __________________________________________ 1 Notwithstanding this language, U.S. holders are required to hold the securities for resale the applicable holding period provided under Rule 144 promulgated under the Securities Act.
m. Subscriber recognizes that the no Federal or state agency has passed upon or endorsed the merits of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period Units or made any finding or determination as to the fairness of time.this investment;
o. The Subscriber: (i) if a natural person, represents that the n. If Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if is a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization trust or other entity, represents that it is authorized to make this investment and the person signing this Agreement on behalf of such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by such entity to do so;
o. If Subscriber is a corporation or a partnership, the person signing this Agreement on its behalf hereby represents and warrants that the information contained herein is true and correct with respect to such shareholders or partners (and if any such shareholder or partner is itself a corporation or a partnership, with respect to all necessary actionpersons having an interest in such corporation or partnership, whether directly or indirectly) and that the person signing this Subscription Agreement has been duly executed made due inquiry to determine the truthfulness and delivered on behalf accuracy of the information contained herein;
p. Any information which the Subscriber has heretofore furnished and furnishes herewith to the Company, including, without limitation, the certification included in Exhibit A as to his/her/its status as an “accredited investor” as defined by Rule 501(a) under the Securities Act and any other information with respect to his/her/its financial position and business experience set forth herein is correct and complete as of the date hereof;
q. This Agreement requires the Subscriber to provide certain information about the Subscriber (the “Personal Information”). Such information is being collected by the Company for the purposes of completing the proposed issuance of the Units, which includes, without limitation, determining the Subscriber’s eligibility to purchase the Units under applicable securities laws, preparing and registering certificates representing the Shares and Warrants and completing filings required by the securities commissions, TSX Exchange and/or other securities regulatory authorities. The Subscriber agrees that the Subscriber’s Personal Information may be disclosed by the Company (including the filing of copies or originals of any of the Subscriber’s documents) to: (a) securities commissions, the TSX Exchange and/or other securities regulatory authorities, (b) the Company’s registrar and transfer agent, and (c) any of the other parties involved in this subscription, including legal counsel, and may be included in record books in connection with this subscription. In the case of information provided to the securities commissions and other securities regulatory authorities, such information is being collected indirectly by them for the purpose of the administration and enforcement of the applicable securities laws and the Subscriber authorizes the indirect collection of such entity information by them. In the case of the TSX Exchange, the Personal Information is being collected by them for the purposes identified by them from time to time. The Subscriber consents to the foregoing collection, use and disclosure of the Subscriber’s Personal Information and to the collection, use and disclosure of Personal Information by the securities commissions, TSX Exchange and/or other securities regulatory authorities. The title, business address and business telephone number of the public official in Ontario who can answer questions about the Ontario Securities Commission’s indirect collection of the information is the Inquiries Officer, Ontario Securities Commission, 00 Xxxxx Xxxxxx Xxxx, 00xx Xxxxx, Xxxxxxx, Xxxxxxx X0X 0X0; Telephone: 000-000-0000; xxxxxxxxxxxxxxxxxxx@xxx.xxx.xx.xx;
r. The Subscriber has no voting or other agreement with another existing shareholder of the Company or investor in this Offering and is not acting as part of a legalgroup in making this investment;
s. The Subscriber has read and understood the Risk Factors attached to this Agreement as Exhibit B;
t. The Subscriber acknowledges and is aware of that certain Side Letter Agreement entered into by the Company with two subscribers (see Section 9.f. below); and
u. The foregoing representations, valid warranties and binding obligation agreements, together with all other representations and warranties made or given by the Subscriber to the Company in any other written statement or document delivered in connection with the transactions contemplated hereby, shall be true and correct in all respects on and as of the date of the applicable closing as if made on and as of such entity; ordate and shall survive the final closing.
Appears in 1 contract
Samples: Subscription Agreement (Security Devices International Inc.)
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants toto the Issuer (which representations and warranties will survive the Closing) that:
(a) the Subscriber is not in, and agrees withor a resident of, the Company as follows:United States or Canada;
a. The (b) the Subscriber acknowledges is not in the United States, is not a U.S. Person, is not purchasing the Securities for the account or benefit of a U.S. Person, did not receive the offer to buy the Securities while in the United States and understandsit (or its authorized signatory) was outside of the United States at the time its buy order was placed and this Agreement was executed;
(c) the Subscriber: (i) that the Tokens offered pursuant to the Memorandum have not been has adequate net worth and will not be registered under the Securities Act or any state securities laws; means of providing for its current financial needs and possible personal contingences, (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained has no need for liquidity in this Subscription Agreement; and investment, (iii) the Tokens are subject to restrictions on transferability has such knowledge and resale under the Securities Act and may not be transferred or resold except experience in business matters as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however capable of evaluating the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges merits and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any risks of its respective officersprospective investment in the Securities, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber (iv) is purchasing able to bear the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability economic risks of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time., and (v) can afford the complete loss of the Subscription Amount;
o. The (d) the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
(g) the Subscriber has received and carefully read this Agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, including those risks disclosed in the Public Record and the possible loss of the entire Subscription Amount;
(i) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber's decision to invest in the Securities and the Issuer;
(j) the Subscriber is not an underwriter of, or dealer in, any of the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
(k) the Subscriber is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Securities, and the Subscriber has not subdivided its interest in any of the Securities with any other person;
(l) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(m) no person has made to the Subscriber any written or oral representations:
(i) that any person will resell or repurchase any of the Securities,
(ii) that any person will refund the purchase price of any of the Securities, or
(iii) as to the future price or value of any of the Securities
(n) offers and sales of any of the Securities prior to the expiration of the period specified in Regulation S (such period hereinafter referred to as the "Distribution Compliance Period") shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the 1933 Act or an exemption therefrom and in each case only in accordance with applicable state and provincial securities laws;
(o) it has not acquired the Securities as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S under the 0000 Xxx) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable securities laws or under an exemption from such registration requirements and as otherwise provided herein;
(p) hedging transactions involving the Securities may not be conducted unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable securities laws;
(q) the funds representing the Subscription Amount will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the "PATRIOT Act") and the Subscriber acknowledges that the Issuer may in the future be required by law to disclose the Subscriber's name and other information relating to this Agreement and the Subscription, on a confidential basis, pursuant to the PATRIOT Act. No portion of the Subscription Amount: (i) if a natural person, represents has been or will be derived from or related to any activity that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing deemed criminal under the laws of the state United States of its organizationAmerica, the consummation of the transactions contemplated hereby or any other jurisdiction, or (ii) is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered being tendered on behalf of a person or entity who has not been identified to or by the Subscriber, and it shall promptly notify the Issuer if the Subscriber discovers that any of such entity representations ceases to be true and provide the Issuer with appropriate information in connection therewith;
(r) the Subscriber is knowledgeable of, or has been independently advised as to, the applicable laws of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the offer and sale of the Securities;
(s) the Subscriber is purchasing the Securities pursuant to exemptions from prospectus or equivalent requirements under applicable laws or, if such is not applicable, the Subscriber is permitted to purchase the Securities under the applicable laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions;
(t) the applicable laws of the authorities in the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the offer, issue, sale or resale of any of the Securities;
(u) the purchase of the Securities by the Subscriber does not trigger:
(i) any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or
(ii) any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction, and
(v) the Subscriber will, if requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (s), (t) and (u) above to the satisfaction of the Issuer, acting reasonably.
6.2 In this Agreement, the term "U.S. Person" will have the meaning ascribed thereto in Regulation S, and for the purpose of this Agreement includes, but is not limited to: (a) any person in the United States; (b) any natural person resident in the United States; (c) any partnership or corporation organized or incorporated under the laws of the United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts; or (e) any estate or trust of which any executor or administrator or trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 1 contract
Samples: Private Placement Subscription Agreement (Be at TV, Inc.)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to PPO Units, the Memorandum Common Stock and Warrants included in the PPO Units and the Warrant Shares (collectively, the “Securities”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Securities. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that no public market now exists, and there may never be a public market for, the Units and/or Warrants, that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering. The Subscriber further acknowledges that the Company filed “Form 10 Information” (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company on May 14, 2010.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that he is purchasing the PPO Units notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including financial statements of the Company for the 3 month period ended September 30, 2010, which statements are currently being prepared and are expected to be filed with the Securities and Exchange Commission on or prior to November 22, 2010.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement, assuming due execution by the parties hereto, constitutes valid and legally binding obligations of the Subscriber, enforceable in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Agreement;
(ii) The Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Securities pursuant to registration of the Securities under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensSecurities prior to the expiration of a period of one year after the date of transfer of the Securities under this Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Securities prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Securities, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.
i. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors in securities of the Company.
j. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Securities and could afford complete loss of timesuch investment.
o. k. The Subscriber: (i) if Subscriber is not subscribing for Securities as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
l. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract
Representations and Warranties of the Subscriber. 6.1 The Subscriber hereby acknowledges, represents and warrants to, to the Issuer (which representations and agrees withwarranties will survive the Closing) that:
(a) unless the Subscriber has completed Exhibit B, the Company Subscriber is not a U.S. Person (as followsdefined in Section 6.2);
(b) the Subscriber is resident in the jurisdiction set out on page 2 of this Agreement;
(c) if the Subscriber is resident outside of the United States and Canada:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering offer and sale of the Tokens Securities,
(ii) the Subscriber is intended to be exempt from registration under purchasing the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements pursuant to exemptions from prospectus or equivalent requirements under applicable laws of the International Jurisdiction or, if such is not applicable, the Subscriber contained in this Subscription Agreement; and is permitted to purchase the Securities under applicable securities laws of the International Jurisdiction without the need to rely on any exemptions,
(iii) the Tokens are subject applicable securities laws of the International Jurisdiction do not require the Issuer to restrictions on transferability and make any filings or seek any approvals of any kind from any securities regulator of any kind in the International Jurisdiction in connection with the offer, issue, sale or resale under of any of the Securities,
(iv) the purchase of the Securities Act by the Subscriber does not trigger:
A. any obligation to prepare and may not be transferred file a prospectus or resold except as permitted under similar document, or any other report with respect to such purchase, in the U.S. Securities Act or as allowed by exemptions within the jurisdiction International Jurisdiction, or
B. any continuous disclosure reporting obligation of the Subscriber or receiver of Issuer in the Tokens.International Jurisdiction, and
b. Prior to the execution of this Subscription Agreement, (v) the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisorwill, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Issuer, deliver to the Issuer a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Issuer, acting reasonably;
(d) the Subscriber or its Advisorshas the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if any, and understand the information contained therein. The Subscriber is satisfied that a corporate entity, it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that is duly incorporated and validly subsisting under the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any laws of its respective officers, jurisdiction of incorporation and all necessary approvals by its directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment shareholders and knowledge others have been obtained to authorize execution and performance of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting this Agreement on behalf of the Company concerningSubscriber;
(e) the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, among other related mattersor, if applicable, the Offeringconstating documents of, the TokensSubscriber or of any agreement, written or oral, to which the Offering Documents Subscriber may be a party or by which the Subscriber is or may be bound;
(f) the Subscriber has duly executed and the Company’s objectives delivered this Agreement and all such questions have been answered to the full satisfaction it constitutes a valid and binding agreement of the Subscriber and its Advisors, if any.enforceable against the Subscriber;
g. The (g) the Subscriber has not reproducedreceived and carefully read this Agreement;
(h) the Subscriber is aware that an investment in the Issuer is speculative and involves certain risks, duplicated or delivered this including those risks disclosed in the Public Record and the possible loss of the entire Subscription Agreement Amount;
(i) the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability Subscriber has made an independent examination and investigation of an investment in the Company, Securities and the Issuer and agrees that the Issuer will not be responsible in any way for the Subscriber's decision to invest in the Securities and the Issuer;
(j) the Subscriber has is not relied upon an underwriter of, or dealer in, any representation of the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
(k) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other information communications published in any newspaper, magazine or similar media, or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and
(oral or writtenl) other than as stated in the Offering Documents or as contained in documents so furnished no person has made to the Subscriber any written or its Advisors, if any, by the Company in writing.oral representations:
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that any person will resell or repurchase any of the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; Securities,
(ii) if a corporationthat any person will refund the purchase price of any of the Securities, partnershipor
(iii) as to the future price or value of any of the Securities.
6.2 In this Agreement, or limited liability company or partnershipthe term "U.S. Person" will have the meaning ascribed thereto in Regulation S, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed and for the specific purpose of acquiring this Agreement includes, but is not limited to: (a) any person in the Tokens, such entity is duly organized, validly existing and United States; (b) any natural person resident in good standing the United States; (c) any partnership or corporation organized or incorporated under the laws of the state United States; (d) any partnership or corporation organized outside the United States by a U.S. Person principally for the purpose of its organizationinvesting in securities not registered under the 1933 Act, the consummation of the transactions contemplated hereby unless it is authorized byorganized or incorporated, and will owned, by accredited investors who are not result in a violation natural persons, estates or trusts; or (e) any estate or trust of state law which any executor or its charter administrator or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and trustee is a legal, valid and binding obligation of such entity; orU.S. Person.
Appears in 1 contract
Samples: Private Placement Subscription Agreement (ALKALINE WATER Co INC)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, warrants and represents and warrants to, and agrees with, to the Company Corporation as follows:
a. (a) The Subscriber acknowledges has received, has thoroughly read, is familiar with and understands: (i) that understands the Tokens offered pursuant to contents of this Agreement describing, among other things, the Memorandum have not been and will not be registered under Corporation, the offering of the Securities Act or any state securities laws; (ii) that and the offering and sale of risks associated with the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription AgreementSecurities. Furthermore, the Subscriber is familiar with the operations and business of the Corporation, and the Subscriber’s attorneySubscriber has received such information as it has deemed appropriate with respect to the Corporation, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested Securities being offered by the Corporation, all in a manner and to an extent that has allowed the Subscriber or its Advisors, if any, and understand to make an informed investment decision regarding the information contained therein. Securities.
(b) The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisorsan Accredited Investor, if anyas indicated above, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial is sophisticated and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, well-informed and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax financial and business matters, and, matters in general and in investments in particular, investment in non-listed and unregistered securitiesbased on actual participation, such that as is necessary to enable the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of a purchase of the Subscriber’s Securities.
(c) The Subscriber has no need for liquidity in his or her investment in the Tokens Securities and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear the risk of that investment for an indefinite period. The Subscriber understands that there presently is no public market for the Securities and none is anticipated to develop in the foreseeable future. The Subscriber's present financial condition is such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is under no present or contemplated future need to dispose of any portion of the Securities subscribed for hereby to satisfy any existing or contemplated undertaking, need or indebtedness. The Subscriber's overall commitment to investments which are not relying on readily marketable is not disproportionate to his or her net worth and the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and Corporation will not with a view cause such overall commitment to resale or distribution thereof, in whole or in partbecome excessive. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its Subscriber's investment in the Tokens andSecurities does not exceed twenty percent (20%) of the Subscriber's net worth (or, correspondinglyif applicable, the business objectives joint net worth of the CompanySubscriber and the Subscriber's spouse).
(d) The Securities has not been registered under the Securities Act, indefinitely because or any state securities act, and is being sold on the Tokens may not be sold, hypothecated or otherwise disposed basis of unless subsequently registered exemptions from registration under the Securities Act and applicable state securities laws or an exemption from acts. Reliance on such registration exemptions is availablepredicated in part on the accuracy of the Subscriber's representations and warranties set forth herein. It is not anticipated The Subscriber acknowledges that there can be no assurance that the Subscriber will be able to liquidate his investment in the Corporation. The Subscriber understands that the Corporation is under no obligation to register the Securities under the Securities Act or to comply with any market for applicable exemption under the Securities Act on behalf of the Subscriber with respect to any resale of the Tokens, Securities and such securities that the Subscriber will not be freely transferable at any timeable to avail himself of the provisions of Rule 144 promulgated under the Securities Act with respect to the resale of the Securities until the Securities has been beneficially owned by the Subscriber for the requisite period following the date of purchase as is provided under Rule 144.
n. (e) If the Subscriber is not a citizen, resident or national of the United States, to insure that the Securities purchased by such Subscriber does not become subject to the United States securities laws, the undersigned foreign citizen, resident or national hereby agrees that its Securities, or any portion thereof, may not be sold exchanged, assigned, or disposed of in the United States or in its territories or possessions, prior to twenty-four (24) months after the completion of the sale of the Securities, as determined by the Board of Directors. Any attempted transfer of any Securities held by any foreign citizen, resident or national in contravention of any of the provisions shall be null and void and will not bind or be recognized by the Corporation and shall have no effect. The foregoing restrictions are in addition to and must be satisfied independently of those set forth in paragraph (d) immediately above.
(f) In evaluating the merits and risks of an investment in the Corporation, the Subscriber has relied on the advice of his or her own personal legal and financial counsel.
(g) The Securities are being acquired solely for the Subscriber's own account, for investment purposes only, and are not being purchased with a view to or for the resale, distribution, subdivision or fractionalization thereof; and the Subscriber has no present plans to enter into any contract, undertaking, agreement or arrangement for such resale, distribution, subdivision or fractionalization. In order to induce the Corporation to issue and sell to the undersigned the Securities subscribed for hereby, the parties hereto agree that the Corporation will have no obligation to recognize the ownership, beneficial or otherwise, of the Securities by anyone other than the Subscriber. The Subscriber is not taking and will not take or cause to be taken any action that would cause the Subscriber to be deemed an "underwriter" within the meaning of Section 2(11) of the Securities Act.
(h) There are substantial risk factors pertaining to an investment in the Corporation. The Subscriber acknowledges that he or she has adequate means read the information set forth above regarding certain of providing such risks and is familiar with the nature and scope of all such risks, including, without limitation, risks arising from the fact that the Corporation is a recently formed entity with limited operating history and financial resources; and the Subscriber is fully able to bear the economic risks of such investment for an indefinite period, and can afford a complete loss thereof.
(i) The Subscriber is subscribing for the Securities, as indicated in Paragraph 1, without being furnished any offering literature or prospectus other than this Agreement. The Subscriber also has been given the opportunity to (i) ask questions of and receive answers from the Corporation and its designated representatives concerning the terms and conditions of the offering, the Corporation and the business and financial condition of the Corporation and (ii) obtain any additional information that the Corporation possesses or can acquire without unreasonable effort or expense that is necessary to assist the Subscriber in evaluating the advisability of an investment in the Corporation and verifying the accuracy of information furnished in the Corporation Agreement. The Subscriber is not relying on any oral representation made by any other person as to the Corporation or its operations and financial condition.
(j) The Subscriber understands that no federal, state or other governmental authority has made any recommendation, findings or determination relating to the merits of an investment in the Corporation.
(k) The address of the Subscriber set forth on the signature page hereof is a true and correct residence address, and the Subscriber is a bona fide resident and domiciliary of such Subscriber’s current financial needs and foreseeable contingencies state or jurisdiction and has no need for liquidity from its investment in the Tokens for an indefinite period present intention of time.
o. becoming a resident of any other state or jurisdiction. The Subscriber: (i) if a natural person, represents that foregoing representations and warranties of the Subscriber has full power are complete, true and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out accurate as of the provisions date hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws shall survive delivery of the state Funds to the Corporation for all purposes. If in any respect any of its organizationsuch representations and warranties shall not be true and accurate following delivery of the funds but prior to the sale of the Securities, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf Subscriber shall give prompt written notice of such entity fact to the Corporation, specifying which representations and is a legal, valid warranties are not true and binding obligation of such entity; oraccurate and the reasons therefor.
Appears in 1 contract
Representations and Warranties of the Subscriber. 7.1 The Subscriber Company hereby acknowledges, represents and warrants to, and agrees with, to the Company Subscriber as follows:
a. (a) The Subscriber acknowledges is duly incorporated and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered validly existing under the Securities Act or any state securities laws; laws of Barbados and has all requisite corporate power and capacity to enter and perform its obligations under this Agreement and to complete the Transaction.
(iib) that the offering This Agreement has been duly authorised, executed and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements delivered on behalf of the Subscriber contained and is a valid and binding obligation of the Subscriber, enforceable in this Subscription Agreement; and (iii) the Tokens are accordance with its respective terms, subject to restrictions on transferability the usual exceptions as to bankruptcy and resale under the Securities Act availability of equitable remedies.
(c) The execution and may delivery of this Agreement, and the performance of the Subscriber's obligations hereunder or the consummation of the transactions herein provided for will not be transferred result in or resold except as permitted under constitute a breach of any term or provision of, or constitute a breach of any term or provision of, or constitute a default under, the U.S. Securities Act constating documents, Articles of Incorporation or as allowed by exemptions within the jurisdiction By-laws of the Subscriber or receiver of any agreement to which the TokensSubscriber is a party or by which the Subscriber is bound.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”d) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisorswill, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided subject to the Subscriber by the Company or any of its respective officersprovisions hereof, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is be purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person Purchased Shares for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisorsaccount, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment purposes and not with a view to resale or the distribution thereof, in whole or in part. The Subscriber has no agreement will not, directly or arrangementindirectly, formal offer, transfer, sell, assign, pledge, hypothecate or informalotherwise dispose of any Purchased Shares (or solicit any offers to buy, purchase, or otherwise acquire any of such Purchased Shares) acquired by it, except in compliance with the Articles and all applicable securities Laws.
(e) The Subscriber understands that the transfer of the Purchased Shares acquired by it pursuant hereto shall be subject to the restrictions imposed by the Articles or applicable securities Laws and may bear restrictive legends describing such restrictions.
(f) The Subscriber is the sole and exclusive beneficial owner of right of the mortgages, with good and marketable title thereto free and clear of any person liens, charges, encumbrances, rights or claims of any nature.
(g) The Mortgages constitute valid and enforceable first registered mortgages and charges against all Real Property, subject to sell no prior registered charges.
(h) The Subscriber's decision to execute this Agreement and purchase the Purchased Shares has not been based upon any verbal or transfer all written representations as to fact or any part otherwise made by or on behalf of the Tokens Company other than those contained in this Agreement.
(i) The Subscriber acknowledges that no prospectus has been filed by the Company with any securities commission or similar regulatory authority in any jurisdiction in connection with the sale of the Purchased Shares and as a result (i) the Subscriber may be restricted from using most of the civil remedies available under applicable securities Laws, (ii) the Subscriber may not receive information that would otherwise be required to be provided to it under applicable securities Laws, and (iii) the Company may be relieved from certain obligations that would otherwise apply under applicable securities Laws.
(j) The Subscriber acknowledges that the investment in the Purchased Shares may have tax and/or other consequences to the Subscriber under applicable Laws, which the Subscriber is solely responsible for determining and in respect of which no assistance will be provided by the Company or its advisors, and the Subscriber has no plans to enter into any such agreement or arrangementobtained its own legal and tax advice.
m. (k) There is no person, firm or corporation acting or purporting to act for the Subscriber entitled to any brokerage or finder's fee in connection with this Agreement.
(l) The aggregate Fair Market Value of the Real Property will be at Closing no less than [100%] of the aggregate Fair Market Value of the Mortgages on that date.
(m) Each of the Subscriber's warranties herein shall be true and correct on Closing as if made by the Subscriber on and as that date.
7.2 The Subscriber understands hereby acknowledges and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives each of the Company, indefinitely because above representations and warranties is being relied on by the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under Company without independent inquiry in connection with the Securities Act issue and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale sale to the Subscriber of the Tokens, Purchased Shares acquired by it and that each such securities will representation and warranty shall not merge in or be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized prejudiced by, and will not result shall survive and continue in a violation of state law or its charter or other organizational documents, such entity has full power force and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; oreffect following Closing.
Appears in 1 contract
Samples: Redeemable Preference Share Subscription Agreement (Strategy International Insurance Group Inc)
Representations and Warranties of the Subscriber. The Subscriber understands that the common stock will be offered and sold in reliance upon certain exemptions from the securities registration provisions of the Securities Act of 1933, as amended (the "1933 Act"). As a condition to purchasing the common stock, and for the purposes of the above-mentioned exemptions and/or qualifications to the extent applicable, and knowing that the Company will rely upon the statement made herein for such exemptions, and in determining the suitability of the investment for the Subscriber, the Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. (1) The offering of the common stock was made only through direct, personal contact between the undersigned and an authorized representative of the Company;
(2) The Subscriber understands that the Company will rely on the accuracy and completeness of the information set forth herein and in the Investor Suitability Questionnaire in complying with its obligations under applicable state and federal securities statutes and regulations;
(3) The Subscriber has been advised that the common stock have not been registered with the Securities and Exchange Commission under the 1933 Act or with any state securities regulatory agency and understands that the common stock is being offered in reliance upon certain exemptions from registration under applicable sate and federal securities statutes;
(4) The Subscriber has such knowledge and experience in financial and business matters that the Subscriber is capable of evaluating the merits and risks of an investment in the Company and the suitability of the common stock subscribed for as an investment, and has had the opportunity to consult with an attorney, an accountant, and/or a personal advisor with respect to the investment in the common stock;
(5) The common stock for which the Subscriber hereby subscribes will be acquired for the Subscriber's own account for investment and not with the view toward resale or redistribution; also, the Subscriber is not buying its common stock as a nominee for any other person, and the Subscriber does not presently have any reason to anticipate any change in circumstances or other particular occasion or event which would cause the Subscriber to sell the common stock subscribed for:
(6) The Subscriber warrants that no representations or warranties have been made to him by the Company as to the tax consequences of this investment, or as to any profits, losses, cash flow, projected return, or investment outcome which may be received or sustained as a result of this investment;
(7) The Subscriber acknowledges that any financial projections prepared by the Company and understands: (i) that any other forward looking information are based upon the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale Company's management's beliefs as of the Tokens is intended to be exempt from registration under the Securities Actdate hereof, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens that they are subject to restrictions on transferability certain risks, uncertainties, and resale under assumptions that actual results could deviate materially from those projected, and that the Securities Act Company does not undertake any duty to update such information;
(8) The Subscriber is able to bear the economic risk of the investment in the common stock subscribed for and has sufficient net worth to sustain a loss of the Subscriber's entire investment in the Company without material economic hardship if such a loss should occur;
(9) The Subscriber acknowledges that the Company has made available to the Subscriber or other personal advisors the opportunity to obtain additional information to verify the accuracy of the information provided by the Company and to evaluate the risks and merits of this investment;
(10) The Subscriber acknowledges that all information made available to the Subscriber or the Subscriber's personal advisors in connection with an investment in the common stock is and shall remain confidential in all respects and may not be transferred reproduced, distributed, or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and used for any other and all other documents requested by purpose without the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any consent of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.;
d. (11) The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable an opportunity to ask questions of and receive satisfactory answers from a the Company or any person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives 's behalf, concerning the terms and conditions of this investment, and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.Subscriber;
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written12) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone if an individual, represents that he/she/it is a bona fide resident and domiciliary, not a transient or together with its Advisorstemporary resident, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that of the state set forth on the signature page hereto. If the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, it represents that such entity it was incorporated or organized under the laws of the state(s) shown on the signature page hereof; and if the Subscriber is a Company, it represents that all of its general partners are bona fide residents and domiciliaries, not transients or temporary residents, of the state(s) shown on the signature page hereof; and if the undersigned is a corporation, trust, Company, or other entity, it represents that it was not formed organized for the specific purpose of acquiring the Tokenscommon stock;
(13) The Subscriber acknowledges and agrees that the Subscriber is not entitled to cancel, such entity is duly organizedterminate, validly existing and in good standing under or revoke this Subscription or any agreements the laws Subscriber delivers hereunder;
(14) The funds to be tendered for the purchase of the state common stock subscribed for will not represent funds borrowed by the Subscriber from any person or lending institution except to the extent that the Subscribers has a source of its organization, repaying such funds other than from the consummation sale of the transactions contemplated hereby is authorized bycommon stock. The common stock will not have been, and will not result in a violation be, pledged or otherwise hypothecated for any such borrowing:
(15) The Subscriber and the persons executing on behalf of state law or its charter or other organizational documents, such entity has full the Subscriber have all requisite power and authority to execute and deliver enter into this Subscription Agreement and to perform all of the obligations required to be performed by the Subscriber as a purchaser of the common stock;
(16) An investment in the Company involves certain risks, including but not limited to those described in the PPM, and the Subscriber has taken full cognizance of and understands all of the risks related to the purchase of the common stock.
(17) The Subscriber, if an individual, represents that either: his/her individual net worth or joint net worth with his/her spouse, if any, exceeds $1,000,000 or he/she had an individual income in excess of $200,000 in each of the two most recent years or joint income with his/her spouse, if any, in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
(18) The Subscriber, if other related agreements or certificates than an individual, represents that it meets the definition of an "accredited investor" as such term is defined in Rule 501 of Regulation D, promulgated under the 1933 Act; and
(19) All information supplied by the Subscriber in the Investor Suitability Questionnaire is true and correct as of the date hereof, and if the Subscriber discovers on any subsequent date that such information was not true and correct when submitted to carry out the provisions hereof and thereof and to purchase and hold the TokensCompany, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf Subscriber will immediately notify the Company of such entity and is a legal, valid and binding obligation of such entity; orinaccuracy.
Appears in 1 contract
Samples: Subscription Agreement (Worldwide Film Funding Inc)
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledgesrepresents, represents warrants and warrants to, and agrees with, covenants to the Company Corporation as follows:
a. A. The information contained in the Subscriber's Purchaser Questionnaire is true and complete, and the Subscriber will promptly provide the Corporation with an executed amendment to such Purchaser Questionnaire if any statement made therein ceases to be true and complete at any time.
B. The Subscriber acknowledges has been furnished all materials relating to the Corporation, its business and understands: (i) financial condition, the offering of the Units and any other matter that the Tokens offered pursuant Subscriber has requested and has been afforded the opportunity to ask all questions and receive all answers the Subscriber wished concerning the terms and conditions of the offering and to obtain any additional information the Corporation possesses or can acquire without unreasonable effort or expense.
C. The Corporation has answered all inquiries that the Subscriber and its representative(s), if any, have made of it concerning the Corporation, its business and financial condition, or any other matter relating to the Memorandum have not been operation of the Corporation and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended Units. No person has made to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred any written or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokensoral representations.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. D. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments an “accredited investor” (as defined in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating 's Purchaser Questionnaire) AND the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if anyrepresentative(s), has sufficient such knowledge and experience in financial, tax financial and business mattersmatters to enable him, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing her or it to utilize the information made available to him, her or it in connection with the Offering offering of the Units, to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtainedprospective investment, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. .
E. The Subscriber (i) has evaluated the risks adequate means of investing providing for his, her or its current needs and possible personal contingencies, (ii) has no need for liquidity in the Tokensthis investment, (iii) is able to bear such riskscompletely all of the economic risks of his investment in the Units, and (iv) can afford a complete loss of such investment.
F. If the Subscriber is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), in making the proposed investment, it is aware of and has determined taken into consideration the diversification requirements of Section 404(a)(3) of ERISA, and it has concluded that the Tokens are a suitable proposed investment in the Corporation is prudent.
G. If an entity, the Subscriber was not formed for the Subscriberpurpose of making an investment in the Corporation and the Subscriber has substantial business activities, in addition to its investment in the Corporation, other than that of investing, reinvesting, owning, holding or trading in securities.
k. H. The Subscriber is not relying on the Company an “investment company” or any of its directorsan “affiliated person” of, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of a “promoter” or “principal underwriter” for an investment in company, within the Tokensmeaning of the Investment Company Act of 1940, as amended.
I. The Units to be acquired under this Agreement are being acquired solely by and for the Subscriber for investment and not as a nominee or agent for the benefit of any other person, and the Subscriber has relied on no current intention to, and will not, distribute, resell or assign the advice ofUnits, or has consulted withother than in accordance with the provisions of the Securities Act, only its own Advisorsthe rules and regulations promulgated thereunder and any other applicable laws including, if anywithout limitation, state securities laws.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. J. The Subscriber understands and agrees acknowledges that it must bear (i) there is no right to demand any distribution from the substantial economic risks of its investment in Corporation, (ii) there is not and will be no public or other market for the Tokens andUnits, correspondingly(iii) the Units have not been registered under the Securities Act, (iv) the business objectives sale of the CompanyUnits is being made in reliance on the exemption for non-public offerings provided by Section 4(2) of the Securities Act and/or Regulation D promulgated thereunder, (v) the Units must be held indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is , and (vi) the Units may not anticipated that there will be any market for resale sold under Rule 144 promulgated by the Securities and Exchange Commission pursuant to the Securities Act unless all of the Tokens, and such securities will not be freely transferable at any timeconditions of that Rule are met.
n. K. The Subscriber understands that no federal or state agency has passed upon the Units, or made any finding or determination as to the fairness of the investment or any recommendation or endorsement of the Units. The Subscriber understands that no offering documents have been filed with or reviewed by state securities administrators because of representations made by the Corporation as to the private or limited nature of the offering.
L. The Subscriber has adequate means not been furnished any offering literature other than materials the Corporation may have provided at the request of providing for such Subscriber’s current financial needs the Subscriber in connection with its purchase of the Units and foreseeable contingencies those materials publicly available on XXXXX, and the Subscriber has relied only on the information contained in this Agreement or on XXXXX and the information furnished or made available to the Subscriber by the Corporation, as described in subparagraphs B and C above, and not on any information, representation or warranty made by any person in any other document or otherwise communicated, whether verbally or in writing.
M. The Subscriber is a resident of the United States of America, is at least 21 years of age, and has no need for liquidity from its investment in the Tokens for an indefinite period of timelegal capacity to execute, deliver, and perform this Agreement.
o. The Subscriber: (i) if a natural person, represents N. All information that the Subscriber has full power provided to the Corporation concerning himself, herself or itself, his, her or its financial position, and authority to execute his, her or its knowledge of financial and deliver business matters, including all information contained herein and in the Purchaser Questionnaire, is true and complete as of the date set forth at the end hereof, and if there is any adverse change in such information before this Subscription subscription is accepted, the Subscriber will immediately provide the Corporation with accurate and complete information concerning any such change.
O. The Subscriber certifies, under penalties of perjury, (i) that the social security number shown on the signature page of this Agreement is true and all other related agreements or certificates complete and to carry out the provisions hereof and thereof; (ii) if that the Subscriber is not subject to backup withholding either because the Subscriber has not been notified that he, she or it is subject to backup withholding as a corporation, partnershipresult of a failure to report all interest or dividends, or limited liability company the Internal Revenue Service has notified the Subscriber that he, she or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity it is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority no longer subject to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orbackup withholding.
Appears in 1 contract
Samples: Subscription Agreement (IntelGenx Technologies Corp.)
Representations and Warranties of the Subscriber. The Subscriber To induce the Fund to accept this subscription, the Subscriber, on its own behalf, and if applicable, on behalf of others for whom it is hereby acknowledgesacting, represents and warrants as follows (which representations and warranties shall be true as of the Closing Time) and acknowledges that the Fund is relying on such representations and warranties in connection with the transactions contemplated herein:
(a) The Subscriber:
(i) is subscribing for the Units as principal for its own account or is deemed to be subscribing as principal; and
(ii) is a resident of one of the Designated Jurisdictions: and
(a) is an “accredited investor” as that term is defined in NI 45-106; and
(b) makes the representations and warranties set forth in the duly completed Schedule A - Accredited Investor Status Certificate (and, if applicable, Schedule A-1 – Form for Individual Accredited Investors) attached hereto and which forms an integral part hereof;
(b) The Subscriber is not a trust company or trust corporation registered under the laws of Xxxxxx Xxxxxx Island that is not registered under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada and where the Subscriber is not an individual, the Subscriber is not a person created or used solely to purchase or hold securities without a prospectus in reliance on a prospectus exemption.
(c) Save and except for the Offering Memorandum, the Subscriber has not received or been provided with a prospectus or other offering memorandum, within the meaning of the Securities Laws, or any sales or advertising literature in connection with the Offering, and the Subscriber’s decision to subscribe for the Units was not based upon, and the Subscriber has not received or relied upon, any verbal or written representations as to fact made by or on behalf of the Fund. The Subscriber’s decision to subscribe for the Units was based solely upon the terms of the Offering described herein, in the Offering Memorandum and information about the Fund which is publicly available (any such information having been obtained by the Subscriber without independent investigation or verification by the Fund).
(d) The Subscriber acknowledges that the Fund may complete additional financings in the future in order to fund the ongoing development of the Fund; that there is no assurance that such financings will be available and, if available, on terms acceptable to the Fund and that any such future financings may have a dilutive effect on current securityholders of the Fund, including the Subscriber.
(e) The Subscriber understands that the Units have not been qualified by prospectus under the Securities Laws, or the applicable securities laws of any other jurisdiction, nor is such qualification contemplated, and that the Units are being issued pursuant to exemptions from the prospectus requirements of the Securities Laws. The Subscriber understands that there will be restrictions on the transferability and resale of the Units and that a legend setting out the restrictions on the transferability and resale of the Units will be placed on all certificates evidencing the Units, subject to the requirements of the Securities Laws, any other applicable securities laws.
(f) The Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Units (including the possible loss of the Subscriber’s entire investment in the Units), is able to bear the risks of an investment in the Units and understands the risks of, and other considerations relating to, the subscription for Units.
(g) The Subscriber acknowledges and agrees that it has read and fully understands the Offering Memorandum. The Subscriber has consulted to the extent deemed appropriate by the Subscriber with the Subscriber's own advisers as to the financial, tax, legal and related matters concerning an investment in Units and on that basis believes that an investment in the Units is suitable and appropriate for the Subscriber. The Subscriber acknowledges and understands that the Fund’s counsel is acting as counsel to the Fund and not as counsel to the Subscriber.
(h) If the Subscriber is not a natural person, (i) the Subscriber has the legal capacity and authority to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units, and to perform its obligations thereunder and consummate the transactions contemplated thereby and when so executed and delivered will constitute valid and legally binding agreements of the Subscriber; (ii) in the case of a Subscriber that is a corporation, it is duly incorporated and validly subsisting under the laws of the jurisdiction of its incorporation; and (iii) any person signing this Subscription Agreement on behalf of the Subscriber has been duly authorized to execute and deliver this Subscription Agreement and each other document required to be executed and delivered by the Subscriber in connection with this subscription for Units. If the Subscriber is an individual, the Subscriber has all requisite legal capacity to acquire and hold the Units and to execute, deliver and comply with the terms of each of the documents required to be executed and delivered by the Subscriber in connection with this subscription for Units. The execution and delivery by the Subscriber, and compliance by the Subscriber with, this Subscription Agreement and each other document required to be executed and delivered by the Company Subscriber in connection with this subscription for Units does not conflict with, or constitute a default under, any instruments governing the Subscriber, any law, regulation or order, or any agreement to which the Subscriber is a party or by which the Subscriber is bound. This Subscription Agreement has been duly executed by the Subscriber and, when accepted by the Fund, will constitute a valid and legally binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.
(i) The Subscriber was offered the Units in the jurisdiction listed in and is resident at the Subscriber's permanent address set forth on page 1 of this Subscription Agreement and intends that the Securities Laws of that jurisdiction shall govern the Subscriber's subscription. Such address is a true and correct address of business or residence of the Subscriber.
(j) The subscription for the Units has not been made through or as a result of, and the distribution of the Units is not being accompanied by any advertisement, including without limitation in printed public media, radio, television or telecommunications, including electronic display, or as part of a general solicitation.
(k) None of the funds that the Subscriber is using to subscribe for Units are, to the knowledge of the Subscriber, proceeds obtained or derived, directly or indirectly, as a result of illegal activities. The funds which will be advanced by the Subscriber hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) and the Subscriber acknowledges that the Fund may in the future be required by law to disclose the Subscriber’s name and other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of the knowledge of the Subscriber none of the funds to be provided by the Subscriber: (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States or any other jurisdiction; or (ii) are being tendered on behalf of a person or entity who has not been identified to the Subscriber. The Subscriber agrees that it shall promptly notify the Fund if the Subscriber discovers that any of such representations ceases to be true, and to provide the Fund with appropriate information in connection therewith.
(l) The representations, warranties and covenants contained in the applicable schedules will be true and correct both as of the date of execution of this Subscription Agreement and as of the Closing Time.
(m) No person has made any written or oral representations:
(i) that any person will resell or repurchase any of the Units, other than pursuant to the redemption right of the Units as described in the Offering Memorandum;
(ii) that any person will refund the Subscription Price or any portion of the Subscription Price; or
(iii) as to the future price or value of the Units.
(n) No securities commission, agency, governmental authority, regulatory body, stock exchange or other regulatory body has reviewed or passed on the investment merits of the Units nor have any such agencies or authorities made any recommendations or endorsement with respect to the Units.
(o) The Fund is relying on an exemption from the requirement to provide the Subscriber with a prospectus under Securities Laws and, as a consequence of acquiring the Units pursuant to such exemption:
(i) certain protections, rights and remedies provided by the Securities Laws, including statutory rights of rescission and certain statutory remedies against an issuer, underwriters, auditors, trustees and officers that are available to investors who acquire securities offered by a prospectus, will not be available to the Subscriber;
(ii) the common law may not provide investors with an adequate remedy in the event that they suffer investment losses in connection with securities acquired in a private placement;
(iii) the Subscriber may not receive information that would otherwise be required to be given under Securities Laws, and
(iv) the Fund is relieved from certain obligations that would otherwise apply under Securities Laws.
(p) If required by applicable Securities Laws or the Fund, the Subscriber shall execute, deliver and file or assist the Fund in filing such reports, undertakings and other documents with respect to the issue and/or sale of the Units as may be required by any securities commission, stock exchange or other regulatory authority.
(q) The Subscriber fully understands that: (i) the Fund is not, and currently has no intention of becoming, a reporting issuer under Securities Laws and as a result, the Units have an indefinite statutory hold period; and (ii) the Subscriber will be a minority holder of Units in a private entity.
(r) The Subscriber is arm’s length (within the meaning of Securities Laws) with the Fund and has not received, and does not expect to receive, any financial assistance from the Fund, directly or indirectly, in respect of the Subscriber’s purchase of Units.
(s) In connection with this Subscription Agreement the Manager and the Fund are collecting certain “personal information” as that term is defined in applicable privacy legislation. The Subscriber acknowledges and agrees that the Manager and the Fund shall only use and disclose such personal information for purposes consistent with the purposes for which it was initially collected without first obtaining consent from the Subscriber, such consent not to be unreasonably withheld. In addition to the foregoing, the Subscriber agrees and acknowledges that the Fund may use and disclose the Subscriber’s personal information as follows:
a. The Subscriber acknowledges and understands: (i) for internal use with respect to managing the contractual relationships and obligations between the Fund and the Subscriber;
(ii) for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to the Canada Revenue Agency;
(iii) disclosure to Securities Commissions and other regulatory bodies with jurisdiction with respect to reports of trades and similar regulatory filings;
(iv) disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;
(v) disclosure to professional advisers of the Fund in connection with the performance of their professional services;
(vi) disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with the prior written consent of the Subscriber;
(vii) disclosure to a court determining the rights of the parties under this Subscription Agreement; or
(viii) use and disclosure as otherwise required or permitted by law. The Subscriber further acknowledges that it has been notified by the Fund:
(i) of the delivery to the applicable securities regulatory authority or regulator of the Subscriber’s personal information (including full name, residential address and telephone number of the Subscriber, the number and type of securities purchased, the total purchase price, the exemption relied upon and the date of distribution); (ii) that the Tokens Subscriber’s personal information is being collected on behalf of the applicable securities regulatory authority or regulator under the authority granted to it in securities legislation; (iii) that the Subscriber’s personal information is being collected for the purposes of the administration and enforcement of the securities legislation of the applicable jurisdiction; and (iv) that public officials in the jurisdictions, as applicable, set out in Schedule B can be contacted regarding any questions about the applicable securities regulatory authority’s or regulator’s indirect collection of personal information.
(t) The Subscriber:
(i) is not a U.S. Person and it is not acquiring the Units for the account or benefit of, a non-discretionary account or similar account of a U.S. Person or for resale in the United States;
(ii) has not been offered pursuant the Units in the United States, this Subscription Agreement has not been signed in the United States, and the individuals making the order to purchase the Memorandum Units and executing and delivering this Subscription Agreement on the Subscriber’s behalf were not in the United States when the order was placed and when this Subscription Agreement was executed and delivered;
(iii) will not offer, sell or otherwise dispose of the Units in the United States or to a U.S. Person unless the Fund has consented to such offer, sale or distribution and such offer, sale or disposition is made in accordance with an exemption from the registration requirements under the U.S. Securities Act and all applicable U.S. Securities Laws or the U.S. Securities and Exchange Commission has declared effective a registration statement in respect of such securities; and
(iv) is aware that the Units have not been and will not be registered under the U.S. Securities Act or any state securities laws; (ii) Blue Sky Laws and that the offering and sale of Units may not be offered or sold, directly or indirectly, in the Tokens is intended to be exempt from United States without registration under the U.S. Securities Act, by virtue or any applicable Blue Sky Laws or compliance with requirements of Section 4(a)(2) thereof, based, in part, upon the representations, warranties an exemption from registration and agreements of the Subscriber contained in this Subscription Agreement; and (iii) acknowledges that the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted Fund has no present intention of filing a registration statement under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if under any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with applicable Blue Sky Laws in respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscribersecurities.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 1 contract
Samples: Subscription Agreement
Representations and Warranties of the Subscriber. 5.1 The Subscriber hereby acknowledges, represents makes the following representations and warrants to, and agrees with, warranties to the Company as followsCompany:
a. (a) The Subscriber acknowledges and understands: (i) understands that the Tokens offered pursuant to Shares the Memorandum Warrants and the common stock issuable upon exercise of the Warrants (the “Securities”) have not been and will not be registered under the Securities Act Act, or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, reliance upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained thereinfrom regulation for non-public offerings. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company Shares or any of its respective officersinterest therein may not be, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens andSecurities or any interest therein will not be, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated resold or otherwise disposed of by the undersigned unless the Securities are subsequently registered under the Securities Act and applicable under appropriate state securities laws or unless the Company receives an opinion of counsel satisfactory to it that an exemption from such registration is available. It ;
(b) The Subscriber is acquiring the Securities for investment for its own account, not anticipated that there will be any market as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, and that such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or entity or to any third person or entity with respect to any of the TokensSecurities;
(c) The Subscriber, or its purchaser representative, within the meaning of Regulation D, Rule 501(h), promulgated by the Securities and such Exchange Commission (its “Purchaser Representative”), has substantial experience in evaluating and investing in private placement transactions of securities will not be freely transferable at any time.
n. in companies similar to the Company and acknowledges that the Subscriber or its Purchaser Representative, can protect its own interests. The Subscriber or its Purchaser Representative has adequate means such knowledge and experience in financial and business matters so that the Subscriber or its Purchaser Representative is capable of providing for such Subscriber’s current financial needs evaluating the merits and foreseeable contingencies and has no need for liquidity from risks of its investment in the Tokens Company;
(d) The Subscriber understands and acknowledges that an investment in the Company is highly speculative and involves substantial risks. The Subscriber can bear the economic risk of the Subscriber’s investment and is able, without impairing the Subscriber’s financial condition, to hold the Securities for an indefinite period of timetime and to suffer a complete loss of such Investor’s investment;
(e) The Subscriber has had an opportunity to ask questions of, and receive answers from, the officers of the Company concerning the Subscription Agreement, the exhibits and schedules attached hereto and thereto and the transactions contemplated by the Subscription Agreement, as well as the Company’s business, management and financial affairs, which questions were answered to its satisfaction. The Subscriber believes that it has received all the information such Investor considers necessary or appropriate for deciding whether to purchase the Securities. The Subscriber understands that such discussions, as well as any information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily a thorough or exhaustive description. The Subscriber acknowledges that any business plans prepared by the Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The Subscriber also acknowledges that it is relying solely on its own counsel and not on any statements or representations of the Company or its agents for legal advice with respect to this investment;
(f) The Subscriber is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.;
o. (g) The Subscriber: (i) if a natural person, represents that residency of the Subscriber (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on the Subscriber’s signature page to this Subscription Agreement;
(h) The Subscriber has full all requisite power and authority to execute and deliver this the Subscription Agreement and all other related agreements or certificates Agreement, to purchase the Securities hereunder and to carry out and perform its obligations under the terms of the Subscription Agreement. All action on the part of the Subscriber necessary for the authorization, execution, delivery and performance of the Subscription Agreement, and the performance of all of the Subscriber’s obligations under the Subscription Agreement, has been taken or will be taken prior to the Closing;
(i) The Agreement, when executed and delivered by the Subscriber, will constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their terms except: (i) to the extent that any indemnification provisions hereof contained herein may be limited by applicable law and thereof; principles of public policy, (ii) if as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (iii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity;
(j) No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or third person is required to be obtained by the Subscriber in connection with the execution and delivery of the Subscription Agreement by the Subscriber or the performance of the Subscriber’s obligations hereunder;
(k) The Subscriber has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by the Subscription Agreement. With respect to such matters, the Subscriber relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Subscriber understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a corporationresult of this investment or the transactions contemplated by the Subscription Agreement;
(l) the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising including advertisements, partnershiparticles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or limited liability company any seminar or partnershipmeeting whose attendees have been invited by general solicitation or general advertising; and
(m) The Subscriber has been informed of and understands the following:
(i) There are substantial restrictions on the transferability of the Securities;
(ii) No federal or state agency has made any finding or determination as to the fairness for public investment, nor any recommendation nor endorsement, of the Securities;
(n) None of the following information has ever been represented, guaranteed, or associationwarranted to the Subscriber, joint stock companyexpressly or by implication by any broker, trustthe Company, unincorporated organization or agent or employee of the foregoing, or by any other entityperson:
(i) The approximate or exact length of time that the Subscriber will be required to remain a holder of the Securities;
(ii) The amount of consideration, profit, or loss to be realized, if any, as a result of an investment in the Company;
(iii) That the past performance or experience of the Company, its officers, directors, associates, agents, affiliates, or employees or any other person will in any way indicate or predict economic results in connection with the plan of operations of the Company or the return on the investment;
(o) The Subscriber has not distributed any information relating to this investment to anyone other than his purchaser representative, if any, and no other person except such personal representative and the Subscriber has used this information;
5.2 Each Subscriber who is a Non-U.S. person (as defined herein) hereby represents and warrants to the Company as follows:
(a) This Agreement is made by the Company with such Subscriber who is a Non-U.S. person in reliance upon such Non-U.S. person’s representations, warranties and covenants made in this Section 5.2;
(b) Such Non-U.S. person has been advised and acknowledges that:
(i) the Securities have not been registered under the Securities Act, the securities laws of any state of the United States or the securities laws of any other country;
(ii) in issuing and selling the Securities to such Non-U.S. person pursuant hereto, the Company is relying upon the “safe harbor” provided by Regulation S and/or on Section 4(2) under the Securities Act;
(iii) it is a condition to the availability of the Regulation S “safe harbor” that the Securities not be offered or sold in the United States or to a U.S. person until the expiration of a period of one year following the Closing Date; notwithstanding the foregoing, prior to the expiration of one year after the Closing (the “Restricted Period”), the Securities may be offered and sold by the holder thereof only if such entity was not formed offer and sale is made in compliance with the terms of this Agreement and either: (A) if the offer or sale is within the United States or to or for the specific purpose account of acquiring a U.S. person (as such terms are defined in Regulation S), the Tokenssecurities are offered and sold pursuant to an effective registration statement or pursuant to Rule 144 under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act; or (B) the offer and sale is outside the United States and to other than a U.S. person;
(iv) As used herein, such entity is duly organizedthe term “United States” means and includes the United States of America, validly existing its territories and possessions, any State of the United States, and the District of Columbia, and the term “U.S. person” (as defined in good standing Regulation S) means:
A. a natural person resident in the United States;
B. any partnership or corporation organized or incorporated under the laws of the state United States;
C. any estate of its organizationwhich any executor or administrator is a U.S. person;
D. any trust of which any trustee is a U.S. person;
E. any agency or branch of a foreign entity located in the United States;
F. any nondiscretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;
G. any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated and (if an individual) resident in the consummation United States; and
H. a corporation or partnership organized under the laws of any foreign jurisdiction and formed by a U.S. person principally for the transactions contemplated hereby purpose of investing in securities not registered under the Securities Act, unless it is authorized byorganized or incorporated, and will owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not result in a violation of state law natural persons, estates or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; ortrusts.
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company as followswarrants:
a. The Subscriber acknowledges and understands: (ia) that the Tokens offered pursuant to the Memorandum have not been and will not be registered Subscriber is an “accredited investor” (as defined in Regulation D promulgated under the Securities Act or any state securities laws; of 1933, as amended (iithe “Act”);
(b) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorneyrepresentative has had access to the same kind of information concerning the Company that is required by Schedule A of the Act, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed to the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes extent that the Company has a limited financial and operating history and possesses such information;
(c) that the Company’s proposed investments in Digital Asset Securities involve Subscriber has received a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any copy of the Company’s investments provided Registration Statement on Amendment No. 4 to Form S-1, dated April 6, 2015, and such other information as the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of may have requested from the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.;
e. The Subscriber acknowledges and understands (d) that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient such knowledge and experience in financial, tax financial and business matters, and, in particular, investment in non-listed and unregistered securities, such matters that the Subscriber it is capable of utilizing the information made that is available to it in connection with concerning the Offering Company to evaluate the merits and risks of investment in the Company including the risk that it could lose its entire investment in the Company;
(e) that the Subscriber understands that the Shares have not been registered under the Act, the securities laws of any state or the securities laws of any other jurisdiction, and that the Shares must be held indefinitely, are subject to restrictions on sale and Transfer (as defined below) and any sale or Transfer permitted under the terms of this Agreement must be registered under the Act and such other securities laws unless an exemption from registration under the Act and such other securities laws covering the sale or Transfer of the Shares is available;
(f) that the Shares are being purchased by the Subscriber for the Subscriber’s investment in the Tokens own sole benefit and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to to, or for resale in connection with, a public offering or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and ;
(g) that the Subscriber has no plans understands that the certificate or certificates representing the Shares (if certificated) may be impressed with a legend stating that the Shares are subject to enter into any such agreement or arrangement.
m. The Subscriber understands restrictions on sale and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may Transfer and have not be sold, hypothecated or otherwise disposed of unless subsequently been registered under the Securities Act and applicable or any state securities laws and setting out or an exemption from such registration is available. It is not anticipated that there will be any market for referring to the restrictions on the Transferability and resale of the Tokens, and such securities will not be freely transferable at any time.Shares; and
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (ih) if a natural person, represents that the Subscriber has full power and authority understands that stop Transfer instructions in respect of the Shares may be issued to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporationany Transfer agent, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization Transfer clerk or other entity, represents that such entity was not formed agent at any time acting for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract
Samples: Class D Common Stock Subscription Agreement (Virtu Financial, Inc.)
Representations and Warranties of the Subscriber. (a) Prior to the date of this Agreement, the Subscriber has received and the Subscriber or the Subscriber’s designated representative has read a copy of the Memorandum, including the Appendices thereto. The undersigned is legally competent, and, if executing this Subscription Agreement on behalf of an entity, is duly authorized, to execute this Subscription Agreement.
(b) Prior to the date of this Agreement, the Subscriber has received and the Subscriber or the Subscriber’s designated representative has read the Risk Disclosure Statements included in the Memorandum.
(c) The Subscriber acknowledges that the General Partner, the Fund and any participating broker-dealers are relying upon the Subscriber’s representations, the Purchaser Suitability Questionnaire, and upon the information and representations concerning the Subscriber in this Agreement. The Subscriber affirms that all such information is accurate and complete and may be relied upon (i) in determining whether the Subscriber is qualified to participate in this offering, (ii) for purposes of determining the availability of an exemption from registration for the offer and sale of the units, and (iii) as a defense in any action relating to the Fund or the offering of units.
(Optional) The Subscriber hereby acknowledgesauthorizes the General Partner to contact his or her accountant, represents ____________________ at _________________________, (_____) _________ and warrants tohereby authorizes his or her accountant to verify the information and representations contained in this Agreement.
(d) The Subscriber (and/or the duly appointed representatives) has had the opportunity to ask questions of, and agrees withreceive answers concerning the terms and conditions of the offering, and to obtain information necessary to verify the Company as follows:
a. accuracy of the information provided. All other information desired in connection with this offering has been obtained. The Subscriber acknowledges has relied only upon such information in determining to subscribe for units.
(e) The Subscriber is purchasing the units for investment, for the Subscriber’s own account, for no other person, and understands: (i) not with a view to distribution thereof. The Subscriber understands the effect of the limitations on disposition of the units, including the Subscriber’s agreement herein that the Tokens offered pursuant to the Memorandum have not been and units will not be registered resold without registration under the Securities Act of 1933 (the “1933 Act”) or any state securities laws; (ii) that the offering and sale an exemption therefrom. The Subscriber consents to implementation of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to such restrictions on transferability transfer. The Fund will not, and resale under is not obligated to register the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and units on the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any behalf.
(collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”f) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied understands that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that an investment in the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve Fund involves a high degree of risk. The Subscriber acknowledges and understands represents that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to under the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Companypresent and reasonably foreseeable circumstances, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens can for an indefinite period of timetime bear the economic risk of investment in the units and can afford to sustain a complete loss with respect to the purchase of such units.
o. The Subscriber: (ig) if If the Subscriber is a natural persontrust, partnership, estate, association or other unincorporated organization, the Subscriber represents that it has the authority to make this investment and that its governing instruments or Bylaws allow such investment. If a corporation, the Subscriber represents that its governing instruments permit, and it is duly qualified to make this investment, and that execution of this Agreement has been duly authorized. If the Subscriber is not an individual, the Subscriber represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed organized for the specific purpose of acquiring the Tokensunits offered in the aforementioned offering.
(h) The Subscriber indemnifies and holds harmless the General Partner, such entity is duly organizedthe Fund and any participating broker-dealers in this offering, validly existing any person controlling one or more of these persons, and in good standing under anyone acting on their behalf, with respect to the laws offer and/or sale of units to the Subscriber, against all liability, costs and expenses arising out of or resulting from any misrepresentation, breach of warranty, or breach of any covenant by the Subscriber contained herein with respect to any offer, sale, distribution or other disposition of the state units or any solicitation of any offer to buy, purchase or otherwise acquire the units subscribed for by the Subscriber hereunder. This Agreement, its organizationprovisions and the representations and warranties contained herein shall be binding upon the heirs, the consummation legal representatives, successors and assigns of the transactions contemplated hereby is authorized bySubscriber.
(i) The tables in the Memorandum (See “Performance History of the Fund” and “Additional Performance Information”) reflecting past performance of the Fund should be read only in connection with the notes to such tables, and should not be interpreted to mean that the Fund will not result in a violation have similar results or will realize any profits whatsoever. The Subscriber understands that the General Partner receives substantial management fees from the Partnership and the Subscriber consents to payment of state law or such fees.
(j) The Subscriber does hereby irrevocably constitute and appoint the General Partner, and its charter or other organizational documentssuccessors and assigns, such entity has as the Subscriber’s true and lawful Attorney-in-Fact, with full power of substitution, in the Subscriber’s name, place and authority to execute stead, to: (i) file, prosecute, defend, settle or compromise litigation, claims or arbitrations on behalf of the Fund; (ii) make, execute, sign, acknowledge, swear to, deliver, record and deliver this Subscription Agreement and all other related agreements file any documents or certificates and instruments, which may be considered necessary or desirable by the General Partner to carry out fully the provisions hereof of the Agreement of Limited Partnership; (iii) to execute one or more further Subscription Agreements on its behalf between the Fund, the General Partner and any person being admitted by the General Partner to the Fund as a Limited Partner (or such other parties as may be appropriate) in such form and on such terms and conditions as the General Partner or other person appointed hereby considers in its, his or her absolute discretion necessary or appropriate, including reference to the Agreement of Limited Partnership and the novation thereof and to purchase agreeing and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered covenanting with such person on behalf of such entity and is a legal, valid and binding obligation the Subscriber that the Subscriber will from the effective date of such entitySubscription Agreement or Agreements comply with and observe the terms of the Agreement of Limited Partnership, including, without limitation, those (if any) necessary or desirable to effect the Subscriber’s admission as a Limited Partner; orand (iv) to perform all other acts contemplated by the Agreement of Limited Partnership or as are necessary or convenient to the operation of the Fund. This Power of Attorney shall be deemed to be coupled with an interest and shall be irrevocable and survive and not be affected by the Subscriber’s subsequent death, incapacity, disability, insolvency or dissolution or any delivery by the Subscriber of an assignment of the whole or any portion of the Subscriber’s units.
(k) By execution of this Agreement, the Subscriber certifies under penalties of perjury that (i) the number shown in this Agreement as the Subscriber’s Social Security or Taxpayer Identification Number is correct, and (ii) that the Subscriber is not subject to backup withholding either because the Subscriber has not been notified by the IRS that the Subscriber is subject to backup withholding as a result of a failure to report all interest or dividends, or because the IRS has notified the Subscriber that the Subscriber is no longer subject to backup withholding. The Subscriber agrees to strike out the language in (ii) above if the Subscriber is unable to make this certification.
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber In order to induce the Company to accept this subscription, the Subscriber, for itself only, on a several and not joint basis, as of the date of its acquisition of the Shares, hereby acknowledges, represents and warrants to, and agrees with, to the Company as follows:
a. (a) The Subscriber acknowledges and understands: Subscriber:
(i) is not a U.S. person* as that the Tokens offered pursuant to the Memorandum have not been and will not be registered term is defined under the Securities Act or any state securities laws; Regulation S (ii“Regulation S”) that the offering and sale of the Tokens is intended to be exempt from registration promulgated under the Securities Act, by virtue of Section 4(a)(2;
(ii) thereof, based, in part, upon is outside the representations, warranties and agreements United States* as of the Subscriber contained in date of the execution and delivery of this Subscription Agreement; and ;
(iii) is acquiring the Tokens Shares for its own account (and/or for the account of other non-U.S. persons*, who are subject outside of the United States*) and not on behalf of any U.S. person, and the sale has not been prearranged with a person in the United States;
(iv) is not acquiring the Shares with the present intention of “distributing” the Shares on behalf of the Company or a “distributor”* as defined in Regulation S, or any of their affiliates, in the United States or to restrictions on transferability and resale a U.S. person under Regulation S;
(v) acknowledges that the Shares may only be resold in accordance with the provisions of the Securities Act and may related regulations and cannot be transferred or resold except sold by it in the United States as permitted under part of a “distribution” (as such term is defined in the U.S. Securities Act or as allowed by exemptions within the jurisdiction federal securities laws of the Subscriber or receiver of United States); and
(vi) agrees not to engage in any hedging transaction with regard to the TokensShares.
b. Prior to the execution of this Subscription Agreement(b) THE SUBSCRIBER HAS RECEIVED, READ CAREFULLY AND UNDERSTANDS THIS AGREEMENT AND ALL SCHEDULES AND APPENDICES HERETO AND HAS HAD AN ADEQUATE OPPORTUNITY TO CONSULT THE SUBSCRIBER’S OWN ATTORNEY, ACCOUNTANT OR INVESTMENT ADVISOR WITH RESPECT TO THE INVESTMENT CONTEMPLATED HEREBY AND ITS SUITABILITY FOR THE SUBSCRIBER.
(c) The Company has provided the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisorsrepresentative, if any, prior to the purchase of the Shares, with the opportunity to ask questions of, and understand receive answers from, representatives of the Company concerning the financial data and business of the Company and to obtain any additional information contained thereinrelative to the financial data and business of the Company, and all such questions, if asked, have been answered satisfactorily and all such documents, if examined, have been found to be fully satisfactory. The Subscriber is satisfied that it the Subscriber has received adequate information with respect to concerning all matters which it or its Advisors, if any, consider the Subscriber considers material to its a decision to make this investment. The Subscriber recognizes that acquire the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such informationShares.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or
Appears in 1 contract
Samples: Conversion and Subscription Agreement (Formation Minerals, Inc.)
Representations and Warranties of the Subscriber. The In connection with the purchase and sale of the Shares hereunder, the Subscriber hereby acknowledges, represents and warrants to the Company that:
(a) The Shares to be acquired by the Subscriber pursuant to this Agreement will be acquired for the Subscriber's own account and not with a view to, or intention of, distribution thereof in violation of the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any applicable state or other securities laws, and agrees with, the Company as follows:Shares will not be disposed of in contravention of the Securities Act or any applicable state or other securities laws.
a. (b) The Subscriber is able to evaluate the risks and benefits of the investment in the Shares. The Subscriber is able to bear the economic risk of its investment in the Shares for an indefinite period of time and acknowledges and understands: that (i) that the Tokens offered pursuant to the Memorandum Shares have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Actand, by virtue of Section 4(a)(2) thereoftherefore, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may cannot be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of sold unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It ; (ii) the Shares may not be sold, transferred, pledged, or otherwise disposed of except in accordance with the Operating Agreement, and upon delivery of an opinion of counsel for or satisfactory to the Company that registration under the Securities Act or any applicable state or other securities laws is not anticipated required; (iii) the exemption provided in Rule 144 under the Securities Act is not presently available for the resale of any of the Shares and it is unlikely that there such exemption will be available at any market time in the future with respect to any proposed transfer of the Shares; and (iv) the Company is not under any obligation to perfect any exemption for the resale of any of the Tokens, and such securities will not be freely transferable at any timeShares.
n. (c) The Subscriber has adequate means had an opportunity to ask questions and receive answers and information concerning the terms and conditions of providing for such Subscriber’s current the sale of the Shares, including information regarding projected performance, estimates or budgets of revenues, results of operations (or any component thereof), cash flows or financial needs and foreseeable contingencies condition or operations (or any component thereof), forward-looking statements, and has had full access to information concerning the Company as it has requested. The Subscriber acknowledges that he has been advised that an investment in the Shares involves a high degree of risk, and is suitable only for persons of adequate financial means who have no need for liquidity from its with respect to this investment in and who can afford the Tokens for an indefinite period risk of timea complete loss of their investment.
o. The Subscriber: (id) if In making a natural persondecision to enter into this Agreement and the Operating Agreement, represents that and to acquire the Shares, the Subscriber has full power relied solely upon its own review of the investment opportunity in the Company and, accordingly, the Subscriber has not relied (and authority to execute and deliver this Subscription Agreement and all other related agreements shall not rely) on information, written or certificates and to carry out oral, provided by the provisions hereof and Manager or its employees, including any information constituting projected performance, estimates or budgets of revenues, results of operations (or any component thereof; ), cash flows or financial condition or operations (ii) if a corporationor any component thereof), partnershipforward-looking statements, or limited liability company or partnershipdue diligence reports, or associationinterviews with management, joint stock companyresearch, trust, unincorporated organization analysis or other entity, represents that such entity was not formed for similar information.
(e) This Agreement constitutes the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orthe Subscriber, enforceable in accordance with its terms, and the execution, delivery and performance of this Agreement by the Subscriber has been duly authorized and do not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Subscriber is a party or any judgment, order or decree to which the Subscriber is subject. The Subscriber has full capacity to execute and deliver this Agreement and to perform its obligations hereunder.
(f) The Subscriber understands the speculative nature of and risks involved in the proposed investment in the Company, and all matters relating to the structure and the operations of the Company have been discussed and explained to Subscriber' satisfaction. The Subscriber specifically acknowledges its understanding that the Purchase Price for the Shares purchased hereby, may not be indicative of the fair market value of the Shares.
(g) The Subscriber is acquiring the Shares without having been furnished any representations or warranties of any kind whatsoever with respect to the business and financial condition of the Company, other than the representations and warranties contained herein.
(h) The Subscriber has discussed with, and relied upon, the advice of the Subscriber's counsel with regard to the meaning and legal consequences of the Subscriber's representations and warranties herein and the considerations involved in making an investment in the Company, and the Subscriber understands that the Company is relying on the information set forth herein.
(i) The Subscriber certifies under penalty of perjury that (i) the Taxpayer Identification Number and address provided under the Subscriber's name on the signature page to this Agreement are correct, (ii) the Subscriber is not subject to backup withholding either because the Subscriber has not been notified that he is subject to backup withholding as a result of a failure to report all interest or dividends or because the Internal Revenue Service has notified the Subscriber that he is no longer subject to backup withholding and (iii) the Subscriber is not a nonresident alien, foreign Operating, foreign trust or foreign estate.
Appears in 1 contract
Samples: Subscription Agreement
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsof the date hereof that:
a. The Subscriber acknowledges and understands: (i) that the Tokens offered pursuant to the Memorandum have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. 4.1 The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws or an exemption from such registration is available. It is not anticipated that there will be any market for resale of the Tokens, and such securities will not be freely transferable at any time.
n. The Subscriber has adequate means of providing for such Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity from its investment in the Tokens for an indefinite period of time.
o. The Subscriber: (i) if a natural person, represents that the Subscriber has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws of the state State of Utah, and has all requisite corporate power and legal capacity and authority to enter into this Agreement, and that this Agreement, when executed and delivered, will constitute its organizationvalid and legally binding obligation, enforceable against the Subscriber in accordance with its terms except to the extent the enforceability thereof may be limited by bankruptcy laws, insolvency laws, reorganization laws or other laws affecting creditor’s rights generally or by general equitable principles.
4.2 The execution, delivery and performance by Subscriber of this Agreement, and the consummation of the transactions contemplated hereby is authorized bytransaction hereunder, do not and will not conflict with, contravene, result in a violation or breach of state or default (with or without the giving of notice or the lapse of time or both): (a) any law applicable to the Subscriber or any of its charter properties or assets; (b) any contract, agreement or other organizational documents, such entity has full power and authority instrument to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out which the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and Subscriber is a legalparty or by which its properties or assets may be bound, valid except for violations and binding obligation defaults that, individually and in the aggregate, would not materially impair the ability of such entity; orthe Subscriber to perform its obligations hereunder.
4.3 The Subscriber hereby confirms, that the New Shares to be acquired by the Subscriber will be acquired for investment for the Subscriber’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same.
4.4 The Subscriber acknowledges that all share certificates evidencing the New Shares subscribed hereunder shall bear (i) the following legend: “These securities have been acquired for investment and have not been registered under the US Securities Act of 1933 or the securities laws of any state and may not be sold, offered for sale, pledged or hypothecated in the absence of an effective registration statement as to the securities under said Act or an exemption therefrom.” and
Appears in 1 contract
Representations and Warranties of the Subscriber. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, to the Company as followsthe following:
a. The Subscriber, its advisers, if any, and designated representatives, if any, have the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its prospective investment in the Company, and have carefully reviewed and understand the risks of, and other considerations relating to, the purchase of PPO Units and the tax consequences of the investment, and have the ability to bear the economic risks of the investment.
b. The Subscriber is acquiring the PPO Units for investment for its own account and not with the view to, or for resale in connection with, any distribution thereof. The Subscriber understands and acknowledges and understands: (i) that the Tokens offered pursuant to PPO Units, the Memorandum Common Stock and Warrants included in the PPO Units and the Warrant Shares (collectively, the “Securities”) have not been and will not be registered under the Securities Act or any state securities laws; (ii) that the offering and sale of the Tokens is intended to be exempt from registration under the Securities Act, by virtue reason of Section 4(a)(2) thereof, based, in part, upon the representations, warranties and agreements of the Subscriber contained in this Subscription Agreement; and (iii) the Tokens are subject to restrictions on transferability and resale under the Securities Act and may not be transferred or resold except as permitted under the U.S. Securities Act or as allowed by exemptions within the jurisdiction of the Subscriber or receiver of the Tokens.
b. Prior to the execution of this Subscription Agreement, the Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, “Advisors”), have received and have carefully reviewed the Memorandum, this Subscription Agreement and the documents annexed hereto or referenced herein (collectively, the “Offering Documents”) and any other and all other documents requested by the Subscriber or its Advisors, if any, and understand the information contained therein. The Subscriber is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any, consider material to its decision to make this investment. The Subscriber recognizes that the Company has a limited financial and operating history and that the Company’s proposed investments in Digital Asset Securities involve a high degree of risk. The Subscriber acknowledges and understands that the information regarding Digital Asset Securities was derived from publicly available sources that the Company believes to be reliable, however the Company has not attempted to verify such information.
c. The Subscriber hereby acknowledges and understands, and has been advised, that there will be no or very limited disclosure materials of any kind regarding any of the Company’s investments provided to the Subscriber by the Company or any of its respective officers, directors, employees, agents, representatives, affiliates or related parties.
d. The Subscriber is purchasing the Tokens based on Subscriber’s own assessment and knowledge of the Company, its management, crypto-currencies and other digital asset securities, together with the Company’s stated objectives.
e. The Subscriber acknowledges and understands that neither the SEC nor any state securities commission has approved or disapproved of the Offering or passed upon or endorsed the merits of the Tokens or the Offering.
f. The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning, among other related matters, the Offering, the Tokens, the Offering Documents and the Company’s objectives and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors, if any.
g. The Subscriber has not reproduced, duplicated or delivered this Subscription Agreement the Offering Documents or other related documents or information to any other person, except to the Subscriber’s Advisors, if any.
h. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than as stated in the Offering Documents or as contained in documents so furnished to the Subscriber or its Advisors, if any, by the Company in writing.
i. The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.
j. The Subscriber, either alone or together with its Advisors, if any, has sufficient knowledge and experience in financial, tax and business matters, and, in particular, investment in non-listed and unregistered securities, such that the Subscriber is capable of utilizing the information made available to it in connection with the Offering to evaluate the merits and risks of the Subscriber’s investment in the Tokens and has obtained, in the Subscriber’s judgment, sufficient information specific exemption from the Company or Subscriber’s Advisors, if any, to evaluate the merits and risks registration provisions of such investment and to make an informed investment decision with respect thereto. The Subscriber has evaluated the risks of investing in the Tokens, is able to bear such risks, and has determined that the Tokens are a suitable investment for the Subscriber.
k. The Subscriber is not relying on the Company or any of its directors, officers, employees, agents or other representatives with respect to the legal, tax, economic and related considerations of an investment in the Tokens, and the Subscriber has relied on the advice of, or has consulted with, only its own Advisors, if any.
l. The Subscriber is acquiring the Tokens solely for Subscriber’s own account for investment and not with a view to resale or distribution thereof, in whole or in part. The Subscriber has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Tokens and the Subscriber has no plans to enter into any such agreement or arrangement.
m. The Subscriber understands and agrees that it must bear the substantial economic risks of its investment in the Tokens and, correspondingly, the business objectives of the Company, indefinitely because the Tokens may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent as expressed herein. The Subscriber further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Securities. The Subscriber understands and acknowledges that the offering of the PPO Units pursuant to this Agreement will not be registered under the Securities Act nor under the state securities laws on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state securities laws.
c. The Subscriber understands that no public market now exists, and there may never be a public market for, the Units and/or Warrants, that an active public market for the Company’s Common Stock does not now exist and that there may never be an active public market for the shares of Common Stock sold in the Offering. The Subscriber further acknowledges that the Company filed “Form 10 Information” (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company on May 14, 2010.
d. The Subscriber, its advisers, if any, and designated representatives, if any, have received and reviewed information about the Company and have had an opportunity to discuss the Company’s business, management and financial affairs with its management. The Subscriber understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally, the Subscriber understands and represents that he is purchasing the PPO Units notwithstanding the fact that the Company may disclose in the future certain material information the Subscriber has not received, including financial statements of the Company for the 12 month period ended December 31, 2009, which statements are currently being prepared and are expected to be filed with the Securities and Exchange Commission on or prior to March 31, 2010 and financial statements for recently acquired or to be acquired businesses.
e. As of the Closing, all action on the part of Subscriber, and its officers, directors and partners, if applicable, necessary for the authorization, execution and delivery of this Agreement and the Registration Rights Agreement and the performance of all obligations of the Subscriber hereunder and thereunder shall have been taken, and this Agreement and the Registration Rights Agreement, assuming due execution by the parties hereto and thereto, constitute valid and legally binding obligations of the Subscriber, enforceable in accordance with their respective terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’ rights.
f. The Subscriber either (i) is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated by the Securities and Exchange Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act, and, in each case, shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.
g. The Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in an offshore transaction pursuant to Regulation S and hereby represents to the Company as follows:
(i) The Subscriber is outside the United States when receiving and executing this Subscription Agreement;
(ii) The Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of the Securities pursuant to registration of the Securities under the Securities Act and any applicable state and provincial securities laws or under an exemption from such registration is available. It is not anticipated requirements and as otherwise provided herein;
(iii) The Subscriber understands and agrees that there will be offers and sales of any market for resale of the TokensSecurities prior to the expiration of a period of one year after the date of transfer of the Securities under this Subscription Agreement (the “Distribution Compliance Period”), shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom, and in each case only in accordance with all applicable securities laws;
(iv) The Subscriber understands and agrees not to engage in any hedging transactions involving the Securities prior to the end of the Distribution Compliance Period unless such securities transactions are in compliance with the Securities Act; and
(v) The Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including: (a) the legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Subscriber’s subscription and payment for, and its continued beneficial ownership of the Securities, will not be freely transferable at violate any timeapplicable securities or other laws of the Subscriber’s jurisdiction.
n. h. Subscriber represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose behalf the Subscriber is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders. The Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If the Subscriber is a financial institution that is subject to the USA Patriot Act, the Subscriber represents that it has met all of its obligations under the USA Patriot Act. The Subscriber acknowledges that if, following its investment in the Company, the Company reasonably believes that the Subscriber is a Prohibited Subscriber or is otherwise engaged in suspicious activity or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to transfer the Securities. The Subscriber further acknowledges that the Subscriber will have no claim against the Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.
i. The Subscriber or its duly authorized representative realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors in securities of the Company.
j. The Subscriber has adequate means of providing for such Subscriber’s its current and anticipated financial needs and foreseeable contingencies contingencies, is able to bear the economic risk for an indefinite period of time and has no need for liquidity from its of the investment in the Tokens for an indefinite period Securities and could afford complete loss of timesuch investment.
o. k. The Subscriber: (i) if Subscriber is not subscribing for Securities as a natural personresult of or subsequent to any advertisement, represents article, notice or other communication, published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Subscriber in connection with investments in securities generally.
l. All of the information that the Subscriber has full power heretofore furnished or which is set forth herein is correct and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Tokens, such entity is duly organized, validly existing and in good standing under the laws complete as of the state date of its organizationthis Agreement, and, if there should be any material change in such information prior to the admission of the undersigned to the Company, the consummation of Subscriber will immediately furnish revised or corrected information to the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Tokens, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; orCompany.
Appears in 1 contract