Document background
The Convertible Debenture Agreement is a sophisticated financing instrument used when companies seek to raise capital while offering investors the flexibility to convert their debt investment into equity. This document, structured under Swiss law, is particularly valuable for growth-stage companies that may not want immediate equity dilution but are willing to offer future equity participation. The agreement must comply with Swiss regulatory requirements, including the Swiss Code of Obligations and financial market regulations. It typically includes detailed provisions on conversion mechanics, pricing, triggers, and protections for both the issuer and debenture holders. The document is commonly used in scenarios where companies need substantial capital for expansion, acquisition, or operational growth, while investors seek the security of debt with potential equity upside.
