This document outlines the key terms of a proposed investment in ABC Sdn. Bhd. by Mr. [Full Name]. The terms include an investment sum of RM [amount] for a 10% equity stake in the company valued at RM [amount]. Upon completion of payment and satisfaction of closing conditions, including board and shareholder approval, ordinary shares will be issued to the investor ranking equally with existing shares. The proceeds will be used for working capital and marketing. Definitive agreements including a shareholders' agreement are contemplated.
Original Description:
Term Sheet template from Investor 101 session by Dr. V. Sivapalan
This document outlines the key terms of a proposed investment in ABC Sdn. Bhd. by Mr. [Full Name]. The terms include an investment sum of RM [amount] for a 10% equity stake in the company valued at RM [amount]. Upon completion of payment and satisfaction of closing conditions, including board and shareholder approval, ordinary shares will be issued to the investor ranking equally with existing shares. The proceeds will be used for working capital and marketing. Definitive agreements including a shareholders' agreement are contemplated.
This document outlines the key terms of a proposed investment in ABC Sdn. Bhd. by Mr. [Full Name]. The terms include an investment sum of RM [amount] for a 10% equity stake in the company valued at RM [amount]. Upon completion of payment and satisfaction of closing conditions, including board and shareholder approval, ordinary shares will be issued to the investor ranking equally with existing shares. The proceeds will be used for working capital and marketing. Definitive agreements including a shareholders' agreement are contemplated.
This Investment Term Sheet is sube!t t" #n$% veri#!$ti"n $nd $&&r"v$% b' the B"$rd "( Dire!t"rs "( the C"m&$n' )herein$(ter re(erred t" $s *Pr"m"ters+,. Invest"r N$me $nd -'.$d number )"r C"m&$n' N$me & C". N".,/ Mr. [Full Name as in MyKad] holder of MyKad No. [number](hereinafter referred to as [Name]) A00re0$te Am"unt "( Investment/ )*Investment Sum+, An investment of RM (Rin!!it Malaysia" only). V$%u$ti"n "( the C"m&$n' $t time "( investment/ )*V$%u$ti"n+, #he $om%any shall be valued at RM (Rin!!it Malaysia" only). Issue Pri!e &er sh$re/ #o be determined by the &om%any 'e$retary. Se!urities t" be issued/ (rdinary 'hares of A)& 'dn. )hd. havin! %ar value of RM*.++ ea$h to!ether ,ith the ri!hts set herein to,ards an enlar!ed e-uity shareholdin! of *+. (ten %er$ent) of the $om%any. 'u$h ordinary shares to ran/ %ari %assu ,ith the eistin! ordinary shares in the &om%any. 1se "( Investment/ 0ro$eeds are to be used for ,or/in! $a%ital in$ludin! salaries and bene1ts2 and mar/etin!3 advertisin! and %romotion. De#nitive A0reements/ &ontem%lates the ee$ution of a 'hareholders A!reement. Si0nin0 D$te "( Term Sheet $nd C"m&%eti"n/ Anti$i%ated si!nin! of the #erm 'heet by [date]. 4nvestors must $om%lete %ayment of the 4nvestment 'um ,ithin 5 days of the si!nin! of the #erm 'heet failin! ,hi$h the 4nvestment 'um be$omes immediately due and %ayable. P$'ment "( Investment Am"unt/ #he entire investment of RM is %ayable u%on $om%letion. C"nditi"ns "( C%"sin0/ &onsents and a%%roval from the )oard of 6ire$tors and all eistin! shareholders of A)& 'dn )hd a$$e%tin! 4nvestor7s %arti$i%ation in the shareholdin! of A)& 'dn )hd. C"m&%eti"n Dr$2d"2n/ &om%lete 6ra,do,n u%on si!nin! of the #erm 'heet and a%%roval by the )oard of 6ire$tors and all eistin! 'hareholders of the &om%any3 $om%letion of all ne$essary $onditions %re$edent and %ayment of all monies due by 4nvestors. #he &om%any 'e$retary shall be instru$ted to issue share $erti1$ates to the 4nvestors ,ithin 5 ,or/in! days of $om%letion of %ayment and ban/ $learan$e. V"tin0 Ri0hts/ 8olders of (rdinary 'hares shall be entitled to attend and vote at all !eneral meetin!s and have all ri!hts to ran/ %ari %assu ,ith the eistin! shareholdin! in the &om%any. S&e!i#! Ri0hts "( First Re(us$%/ 4f any shareholder %ro%oses to o9er or transfer any of their shares3 eistin! holders of the (rdinary 'hares shall have a ri!ht of 1rst refusal in the %ro%ortion of their eistin! shareholdin! in the &om%any. C"m&"siti"n "( the B"$rd "( Dire!t"rs/ #he 4nvestin! 0arty is [entitled to seats: is not entitled to any seats] on the )oard of 6ire$tors [but may be a%%ointed in the future as and ,hen ne$essary]. B"$rd "( Advis"rs/ 4nvestors shall ho,ever3 sub;e$t to their $onsent and the $onsent of the 6ire$tors3 be a%%ointed as members of the )oard of Advisors of A)&. <ntil determined other,ise3 the )oard of Advisors ,ill not be %aid any fee or sti%end. C"m&ens$ti"n ("r Advis"rs & N"n3E4e!utive -embers "( the Te$m/ Advisors and Non=>e$utive Members of the team may be $om%ensated either 1nan$ially or via a sto$/ o%tion s$heme in the future based on their $ontribution to the &om%any and the !ro,th of the &om%any. Further !"ven$nts/ 0romoters and the $om%any $ovenant to their best /no,led!e that %rior to $losin! there is no adverse $han!e in the %ros%e$t3 business3 o%eration or 1nan$ial $ondition of the $om%any. The v$%idit' "( the $b"ve tent$tive terms sh$%% e4&ire 2ithin 56 d$'s (r"m 7d$te8. .ind%' $!9n"2%ed0e the $!!e&t$n!e "( the $b"ve s$id terms. Si0ned ("r $nd "n beh$%( "( ABC Sdn. Bhd. / ::::::::::::::: N$me/ ::::. )Dire!t"r & CEO, D$te/ A!!e&ted b' the Invest"r/ ::::::::::::::: N$me/ D$te/