SHARE CONSIDERATIONS with EQUITY FINANCING
Neufeld Legal P.C. can be reached by telephone at 403-400-4092 / 905-616-8864 or email Chris@NeufeldLegal.com
Extending share equity in exchange for obtaining corporate financing, has become an increasingly common form of raising capital to advance a business' operations. Nevertheless, the exchange of corporate shares for financing comes with serious considerations, as the corporate stock that is being conferred on the financial investors represents a substantive piece of the company.
Such corporate control needs to be carefully considered, as conferring too much share control can seriously impede the long-term progress of the business. The shares' characteristics need to be properly attuned to the security, assurances and return-on-investment that is being sought by the financial investors versus the retention of appropriate control by the company's founders to properly drive the company into the future and assume a degree of risk to which investors are typically averse if given the reigns of corporate power.
At Neufeld Legal, we understand the challenges and legal implications associated with businesses attaining the appropriate form of financing to advance their commercial ventures, while complying with a stringent legal and regulatory structure that often appears to be averse to the advancement of commercial loans and other financial instruments. For knowledgeable and experienced legal representation in advancing your business' commercial financing initiatives, contact our law firm in strict confidence, by telephone at 403-400-4092 or 905-616-8864, or via email at Chris@NeufeldLegal.com.
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