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About


What is a Share Subscription Letter?

A Share Subscription Letter is a simple, direct letter to apply for the issue of new shares.

Contrary to a Seed Investment Agreement, a Share Subscription Letter does not include any warranties or limitation on liabilities, nor any rights for investors or obligations for existing shareholders.

A Share Subscription Letter, given its simple and no-frills nature, is often used to issue new shares to only existing shareholders.

Key points included

  • Subscription price for each new share;
  • Number of new shares to be issued to investors;
  • Subscription amount to be paid by investors; and
  • Payment method.

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