Document background
The Shareholder Subscription Agreement is a crucial document used in Canadian corporate finance transactions when a company issues new shares to investors. This agreement is essential for both private and public companies seeking to raise capital through share issuance, though it's most commonly used in private placements. The document must comply with Canadian securities regulations, including provincial securities laws and national instruments regarding prospectus exemptions. It typically contains detailed information about the share subscription, including price, number of shares, class of shares, and payment terms, along with comprehensive representations and warranties from both the issuing company and the subscriber. The agreement serves multiple purposes: documenting the investment terms, ensuring regulatory compliance, protecting both parties' interests, and establishing a clear framework for the share issuance process.
