Standby Equity Purchase Agreement (Genie AI)

The Standby Equity Purchase Agreement (Genie AI) is a legal template that outlines the terms and conditions under which an investor, commonly referred to as the "purchaser" or "standby purchaser," agrees to provide funding to a company or issuer, typically known as the "issuer" or "company," in exchange for shares of its preferred or common stock. This agreement functions as a standby commitment, meaning that the investor is committed to purchasing the company's stock at a predetermined price within a specific time frame, upon the occurrence of certain trigger events, such as the need for additional capital by the issuer.

The purpose of this legal template is to ensure a ready source of financing for the company, usually in situations where the timely availability of capital is uncertain or unpredictable. The Genie AI aspect of the Standby Equity Purchase Agreement refers to the utilization of artificial intelligence (AI) technology provided by Genie to facilitate the evaluation and implementation of the agreement.

The agreement encompasses various provisions, including the purchase price of the shares, the specific trigger events that activate the standby commitment, and the conditions for the issuance and delivery of shares to the purchaser. It also clarifies the rights and obligations of both parties, including representations and warranties, indemnification, and dispute resolution mechanisms.

Ultimately, this legal template aids in establishing a standby equity purchase arrangement between an investor and a company, ensuring access to necessary funding while allowing the investor to secure shares of the issuer's stock at predetermined terms.