When the Convertible converts into shares this will dilute existing shareholders, therefore you should make sure the investment opportunity is promoted to your existing shareholders who may wish to invest further to avoid that dilution. Because the Convertible is an agreement to issue shares, pre-emption rights will generally apply.
Articles in this section
- Can I apply to raise finance on Crowdcube?
- How can I secure lead investment?
- What is the right amount of lead/cornerstone investment to bring to my pitch?
- Raising finance through a convertible
- What impact does a Convertible have on existing shareholders?
- Raising finance through equity
- Why should I raise finance on Crowdcube?
- What fees does Crowdcube charge for raising finance on the platform?
- How much can I raise?
- Can I raise finance to pay off existing company debts?