Convertible Loan Note (UK) with Legal Review & Advice
£255.00
The Convertible Loan Note (UK) is a template for a legally binding agreement between an investor and a company registered in England and Wales. It outlines the terms under which the investor lends funds to the company, with the loan potentially converting into equity under specified conditions.
Key Segments Covered by our Convertible Loan Note (UK):
- Loan Terms
- Conversion Mechanism
- Investor Protections
- Representations and Warranties
- General Provisions
Product Features:
- This downloadable legal template is suitable for use in England and Wales and is available in Word and PDF format.
- Includes a set of drafting instructions to assist you with customizing the document for your specific needs.
- Includes a 30-minute online consultation for the review of the document by a solicitor.
- Access to the calendar for scheduling the online consultation shall be made available upon purchase.
To obtain the best results from your online consultation, please email the completed document to be reviewed to info@uk.entrep.legal at least 24 hours prior to the consultation.
Description
Key Features:
- Loan Terms:
- The document specifies the loan amount, interest rate, and permitted use of funds (e.g., working capital).
- Includes provisions for repayment and conversion of the loan.
- Conversion Mechanism:
- The loan may convert into shares upon predefined events, such as a qualified equity financing round, acquisition, IPO, or at the maturity date.
- Conversion is based on a discount rate or valuation cap, ensuring the investor’s equity stake aligns with agreed terms.
- Investor Protections:
- Provides rights such as receiving financial updates (information rights) and appointing an observer to attend board meetings.
- Representations and Warranties:
- The company affirms its authority to execute the agreement and that the terms do not conflict with existing obligations.
- General Provisions:
- Specifies that the agreement is governed by the laws of England and Wales.
- Contains provisions for amendment, notices, and assignment.
This template is intended for use in venture financing, helping investors secure potential equity while companies gain access to immediate funding. It should be reviewed by legal professionals to ensure it aligns with the specific transaction’s goals and complies with English law.
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