Document background
The Convertible Note Purchase Agreement is a crucial financing instrument commonly used by Malaysian companies, particularly startups and growth-stage businesses, to secure early-stage or bridge funding. This document is typically employed when a company needs to raise capital but either wants to defer equity valuation or seeks a more flexible financing structure than immediate equity investment. The agreement must comply with Malaysian corporate and securities laws, including the Companies Act 2016 and Capital Markets and Services Act 2007. It contains essential provisions for the issuance of convertible notes, including investment terms, conversion rights, investor protections, and compliance with local regulatory requirements. The document is particularly relevant for companies planning future equity financing rounds, as it provides a pathway for note conversion into equity at predetermined terms or upon qualifying events.
