Kentucky Subscription Receipt

• Category: Contracts - Buy Sell - Receipts
• State: Multi-State
• Control #: US-0434BG
• Format: Word; Rich Text

Description

A subscription agreement involves the purchase of the shares of a firm by an entity (subscriber) who becomes a shareholder upon its inclusion in the shareholders register. A Kentucky Subscription Receipt is a financial instrument used by companies to raise capital in the Canadian market. It is commonly referred to as a "receipt" because it represents the temporary acquisition of shares and is later exchanged for fully-paid shares once certain conditions are met. These subscription receipts are particularly popular in the resource and exploration sectors, where companies often need to secure funding for future projects and operations. The main purpose of Kentucky Subscription Receipts is to allow companies to raise funds quickly while minimizing the administrative burden. When issued, these receipts are typically sold to institutional investors or high net worth individuals through a short-term private placement. The funds raised from the issuance of these receipts are held in escrow until certain predefined conditions are met, usually within a specified timeframe. Once the conditions are satisfied, the subscription receipts are automatically converted into common shares of the issuing company on a one-to-one basis. This conversion usually occurs upon completion of specific events like the closing of an acquisition, a public offering, or the attainment of a certain corporate milestone. Essentially, it allows investors to acquire shares with a future share price set at the time of the initial issuance, providing the opportunity for potential capital appreciation. It is important to note that each Kentucky Subscription Receipt offering may have different terms and conditions, depending on the company's requirements and the investor's preferences. These variations may include conversion provisions, predetermined events triggering the conversion, the length of the escrow period, the potential for dividend payments, and any other particular stipulations agreed upon by the parties involved. In summary, a Kentucky Subscription Receipt is a financial instrument utilized by Canadian companies to raise capital quickly, primarily in the resource and exploration sectors. The receipt represents a temporary acquisition of shares, which are held in escrow until predefined conditions are met. Upon fulfillment of these conditions, the subscription receipts are converted into common shares, providing investors with ownership in the company. By offering this flexible investment tool, companies can attract capital and investors can gain exposure to potentially lucrative opportunities in the Canadian market.

A Kentucky Subscription Receipt is a financial instrument used by companies to raise capital in the Canadian market. It is commonly referred to as a "receipt" because it represents the temporary acquisition of shares and is later exchanged for fully-paid shares once certain conditions are met. These subscription receipts are particularly popular in the resource and exploration sectors, where companies often need to secure funding for future projects and operations. The main purpose of Kentucky Subscription Receipts is to allow companies to raise funds quickly while minimizing the administrative burden. When issued, these receipts are typically sold to institutional investors or high net worth individuals through a short-term private placement. The funds raised from the issuance of these receipts are held in escrow until certain predefined conditions are met, usually within a specified timeframe. Once the conditions are satisfied, the subscription receipts are automatically converted into common shares of the issuing company on a one-to-one basis. This conversion usually occurs upon completion of specific events like the closing of an acquisition, a public offering, or the attainment of a certain corporate milestone. Essentially, it allows investors to acquire shares with a future share price set at the time of the initial issuance, providing the opportunity for potential capital appreciation. It is important to note that each Kentucky Subscription Receipt offering may have different terms and conditions, depending on the company's requirements and the investor's preferences. These variations may include conversion provisions, predetermined events triggering the conversion, the length of the escrow period, the potential for dividend payments, and any other particular stipulations agreed upon by the parties involved. In summary, a Kentucky Subscription Receipt is a financial instrument utilized by Canadian companies to raise capital quickly, primarily in the resource and exploration sectors. The receipt represents a temporary acquisition of shares, which are held in escrow until predefined conditions are met. Upon fulfillment of these conditions, the subscription receipts are converted into common shares, providing investors with ownership in the company. By offering this flexible investment tool, companies can attract capital and investors can gain exposure to potentially lucrative opportunities in the Canadian market.