Document background
The Advance Subscription Agreement is commonly used in South African business transactions where companies seek to secure investment commitments before a formal share issuance. This document type is particularly valuable for startups and growing companies that need immediate funding but may need time to complete formal share issuance requirements or are waiting for specific conditions to be met. The agreement must comply with South African Companies Act requirements and often includes provisions for exchange control regulations when foreign investors are involved. It typically details the advance payment structure, future share valuation methods, conversion triggers, and investor protections, while also addressing regulatory compliance requirements specific to the South African context.
