Document background
The Convertible Bond Agreement is a crucial financing instrument used when companies seek to raise capital while offering investors the potential for equity participation. This document, structured under Danish law, provides a detailed framework for issuing debt securities that can be converted into equity shares under specified conditions. It is particularly valuable for growth-stage companies that need funding but want to defer equity dilution, or for companies seeking to offer investors both the security of debt and potential equity upside. The agreement comprehensively addresses conversion rights, pricing mechanisms, anti-dilution provisions, and bondholder protections, all while ensuring compliance with Danish corporate and securities regulations. This type of financing instrument bridges the gap between pure debt and pure equity financing, making it an attractive option for both issuers and investors in various growth scenarios.
