Overview of a Share Subscription Letter
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.
