Document background
The Standby Equity Purchase Agreement (SEPA) is a strategic financing instrument used when companies require flexible access to capital markets while maintaining control over the timing and amount of equity issuance. This document type, structured under Dutch law, is particularly valuable for growing companies or those with variable capital needs. The agreement typically includes detailed provisions on commitment amounts, pricing mechanisms, draw-down procedures, and regulatory compliance requirements under Dutch financial markets regulations and the Financial Supervision Act (Wft). It provides companies with the ability to raise capital on an as-needed basis while giving investors certain protections and rights in return for their standby commitment. The document must comply with Dutch corporate law requirements, stock exchange regulations (if applicable), and European Union financial regulations.
