Common Contracts
1 similar Note Purchase Agreement contracts
Convertible promissory note purchase agreementNote Purchase Agreement • May 25th, 2023 • Delaware
A convertible promissory note is a legal document that is a type of debt instrument that can be converted into equity for a business. A convertible promissory note will typically have a fixed interest rate and a maturity date, but the holder has the option to convert it into shares at any time before its due date. This means that if an investor holds this security until maturity, they are entitled to receive their original investment plus interest payments, or they can convert it into shares in order to reap profits from your company's growth.Convertible promissory notes are commonly used in the fundraising space when businesses need to raise capital for their growth. When the loan matures, it can be repaid in cash or stock. This type of financing is often used by startups who need money for their business but don't want to give up any ownership shares in their company.
