A Convertible Bond Purchase Agreement is a legal contract between an issuer and an investor detailing the terms and conditions under which the investor agrees to purchase convertible bonds issued by the company. Convertible bonds are hybrid securities that offer the holder the option to convert the bond into a predetermined number of the issuer’s equity shares within a specified period or at maturity.
The Agreement outlines the terms, rights, and obligations of the parties involved in the transaction, providing a framework for raising capital, facilitating investment, and managing financial risks and opportunities associated with convertible securities. It is crucial for both issuers and investors to understand the terms and implications of the agreement fully, seeking professional legal and financial advice to ensure compliance with applicable laws and alignment with their respective strategic objectives and financial goals.