Sign Assignment of Shares

How to eSign a document: Sign Assignment of Shares

[Music] hi I believe X you're from seven Stuart and welcome to our VCE term-sheet deep dive where we look through a series a tip sheet that you might typically see if you're raising financing in Southeast Asia if you want to download the term sheet which is marked up and which we refer to in this in this video click on the link below the video and you can download that document we've also got a whole bunch of great resources on our website at wwlp.com where you can learn a little bit more about raising capital in the region okay this is video 5 and we're going to talk a little talk about the parts of the term sheet that refer to the company issuing shares in the future or where a shareholder wants to transfer shares and you this these concepts of right of first refusal and pre-emptive rights appear in in all term sheets so you could well if they're not necessarily critical compared to some of the other issues you might consider there's a few nuances to them that you need to consider as you go along ok so that the first element of this is what's called pre-emptive rights which is the right that for example the investors will have to participate in future financing rounds and effectively they have a right of first refusal to maintain their their equity stake in the company if you try and raise money in the future and it's better say that most series-a investors will want some form of pre-emptive rights in the term sheet and the final form documents some of the things to consider here the first thing is that you may not want to offer pre-emptive rights to all of the investors and you may want to caveat that by only offering both these pre-emptive rights to major major investors i investors that are going to take significant stakes in the company so that's one way of if you like limiting the impact of the pre-emptive rights the other thing you might want to consider is whether the investors by way of a majority which maybe 50 or maybe 75% can agree to waive these pre-emptive rights on a future financing round and the reason that this is we're thinking about both the material holding and the potential waiver is that the more shareholders that have the benefit of pre-emptive rights the more of a the more CASL it is for you in the future if you if you're raising money because you have to get waivers the pre-emptive rights from all of those shareholders who are who are not participating in the round which is often the case so the objective here is to try and keep the number of parties with preemptive rights to a minimum and put some qualifiers around it the other thing that we often try and do in a term sheet is put some exemptions to the pre-emptive...