The Term Sheet is not a commitment to invest, and is conditioned on the completion of the conditions to closing set forth.
Oregon Term Sheet — Series A Preferred Stock Financing is a legally binding document that outlines the terms and conditions of an investment in a company's common stock through preferred stock financing. This type of financing is commonly utilized by companies seeking capital for growth and expansion purposes. The Oregon Term Sheet serves as a roadmap for negotiations between the company and potential investors, providing a comprehensive overview of the investment terms and rights associated with the preferred stock. Key features of an Oregon Term Sheet — Series A Preferred Stock Financing typically include the following: 1. Investment Amount: The Term Sheet specifies the amount of investment the company seeks to raise through the issuance of preferred stock, often denoted in a fixed dollar amount or as a target range. 2. Valuation: It outlines the pre-money valuation of the company, which determines the ownership percentage that the investor will receive in exchange for their investment. The valuation is typically determined through negotiations between the company and investors, considering factors such as the company's current value and growth potential. 3. Liquidation Preference: This section describes the rights of preferred stockholders to receive preferential payment in the event of a liquidation or sale of the company. It may also specify if the liquidation preference is participating or non-participating, affecting the potential return on investment for the preferred stockholder. 4. Dividend Preference: The Term Sheet may outline whether preferred stockholders are entitled to receive dividends before any dividends can be distributed to common stockholders. The specific terms, such as the dividend rate and whether it is cumulative or non-cumulative, are typically detailed in this section. 5. Conversion Provisions: In some cases, the preferred stock can be converted into common stock at the option of the stockholder. The Term Sheet will detail the conversion terms, including the conversion ratio and any potential adjustments based on certain events, such as subsequent funding rounds or company acquisitions. 6. Rights and Protections: This section outlines the rights and protections afforded to preferred stockholders, which could include voting rights, consent rights, anti-dilution protection, board representation, and information rights. Types of Oregon Term Sheet — Series A Preferred Stock Financing: 1. Oregon Term Sheet — Series A-1 Preferred Stock Financing: This represents an additional funding round following an initial Series A Preferred Stock Financing. It may include different or modified terms compared to the original Term Sheet. 2. Oregon Term Sheet — Series A-2 Preferred Stock Financing: Similar to the A-1 round, this represents further funding rounds with potentially different terms. Series A-2 financing typically occurs when companies require additional capital beyond what was raised in the initial Series A round. Overall, the Oregon Term Sheet — Series A Preferred Stock Financing is a vital document that helps solidify the investment agreement between the company seeking capital and the investors. It encompasses various aspects of the preferred stock financing, protecting the interests and rights of both parties involved in the transaction.
