ArmInfo.The Armenian government wants to introduce a new agreement format - SAFE (Simple agreement for future equity). At the plenary meeting on March 19, the National Assembly of the Republic of Armenia is discussing amendments to the law "On Joint-Stock Companies" in the first reading.
According to the Deputy Minister of Economy of the Republic of Armenia Rafael Gevorkyan, this format of the agreement is most beneficial for start-up companies, although there are no restrictions for other players in this sense. In particular, under such an agreement, the investor gives the startup money with the condition that he will receive shares, usually at a predetermined price, when certain stages are completed, for example, entering an IPO, attracting new investments, etc. In the event of bankruptcy of the company, the investor under certain conditions, will receive the invested funds back.
Gevorkyan noted that such an agreement format is a fairly common practice in the world.
