Subscription and De Spac Payment Clause Samples

The SUBSCRIPTION AND DE-SPAC PAYMENT clause defines the terms under which investors commit funds to a company in connection with a SPAC (Special Purpose Acquisition Company) transaction, and how those funds are to be paid and allocated during the de-SPAC process. Typically, this clause outlines the timing, method, and conditions for payment, such as requiring investors to transfer funds upon the closing of a merger or acquisition, and may specify escrow arrangements or payment milestones. Its core function is to ensure that the financial commitments necessary for the de-SPAC transaction are clearly structured and enforceable, thereby reducing uncertainty and facilitating a smooth closing process.