Columbus Ohio Convertible Promissory Note by Corporation - One of Series of Notes Issued Pursuant to Convertible Note Purchase Agreement

State:
Multi-State
City:
Columbus
Control #:
US-02860BG
Format:
Word; 
Rich Text
Instant download

Description

A Convertible Note is a simple promissory note, usually bearing interest and payable at some future date. The unique aspects of a convertible note are:

A. It converts into equity in the company so long as certain agreed metrics are achieved;

B. Conversion rather than repayment is the usual intention of the parties

C. The usual events for conversion (a conversion event) could be some or all of:
1. Later financing acquired of an agreed minimum level;
2. Developmental milestones reached by the company; and/or
3. Strategic partnerships concluded with important companies;

The conversion into equity is usually at a valuation that is consistent with the valuation agreed to with investors in an investment round that occurs at a later time.

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Columbus Ohio Convertible Promissory Note by Corporation - One of Series of Notes Issued Pursuant to Convertible Note Purchase Agreement