A Delaware Subscription Receipt is a financial instrument used in certain fundraising transactions that allows investors to subscribe to the future issuance of securities by a company. It is typically utilized in private placement offerings or when a company is going public through a special purpose acquisition company (SPAC). The Delaware Subscription Receipt acts as a placeholder for shares or other securities that will be issued in the future. Investors pay a subscription price for the receipt, giving them the right to receive the securities once certain conditions are fulfilled. These conditions may include the completion of a specific event, such as the closing of an acquisition or the achievement of certain milestones. There are various types of Delaware Subscription Receipts, tailored to specific fundraising scenarios: 1. Equity Subscription Receipts: These represent the right to receive common shares or preferred shares of the issuing company upon the completion of the specified event. Investors can convert their subscription receipts into actual shares at a predetermined conversion price. 2. Debt Subscription Receipts: In this type, investors receive the right to obtain debt securities, such as convertible notes or bonds, instead of equity shares upon the fulfillment of the specified conditions. The terms of the debt securities, including interest rates and maturity dates, are outlined in the subscription receipt agreement. 3. Warrant Subscription Receipts: This type provides investors with the option to acquire warrants upon the satisfaction of the defined conditions. Warrants grant the holder the right to purchase additional shares of the issuing company at a predetermined price within a specified timeframe. Delaware Subscription Receipts are commonly used in corporate transactions, particularly when companies require funds for expansion, acquisitions, or going public. They offer flexibility to investors by allowing them to participate in the company's future success while mitigating risks associated with the fulfillment of certain conditions. When investing in Delaware Subscription Receipts, it is important for investors to carefully review the offering documents and subscription receipt agreement to understand the terms, conditions, and potential risks involved. Consulting with legal and financial professionals is advisable to ensure a thorough understanding of the investment opportunity.