What is a Convertible Note Subscription Letter ?
A Convertible Note Subscription Letter is a letter for an investor to subscribe for convertible note.
A convertible note is a debt instrument that converts into equity under predefined conditions. If there are multiple investors subscribing for the same note, a Convertible Note Instrument should be used, followed by a Convertible Note Subscription Letter for each investor.
The terms of subscription set out in a Convertible Note Subscription Letter can be different from investor to investor, for example one investor may be entitled to pro rata rights while another is not.
Key points included
- Principal amount;
- Date on which the Convertible Note Instrument was created;
- Aggregate principal amount; and
- Payment method and timing.
