Document background
The Note And Warrant Purchase Agreement is a strategic financing instrument commonly used in South African corporate finance transactions when companies seek to raise capital while offering investors both debt security and potential equity participation. This document is typically employed in growth-stage financing, bridge funding scenarios, or when companies need flexible financing solutions. The agreement details the terms of both the notes (debt instruments) and warrants (right to purchase equity), including interest rates, maturity dates, conversion features, warrant exercise prices, and periods. It must comply with South African legal requirements, particularly the Companies Act 71 of 2008 and financial markets regulations. The document is especially useful when companies want to attract investors by offering the security of debt combined with the upside potential of equity participation, while maintaining current ownership structure in the immediate term.
