Aurum Advised an Alternative Finance Project on Corporate Structuring and $2.4M Financing

Aurum advised a project involved in alternative finance on the formation of a legal entity in the State of Delaware and execution of a USD $2.4 million financing round, backed by a large Silicon Valley investment fund.

The client required a US holding/issuing entity to accommodate the lead investor’s investment and governance requirements. Aurum advised on entity selection and implementation of the Delaware C-Corp structure, including incorporation, governance set-up and the required corporate actions and resolutions. The firm also advised on structuring and negotiation of the financing with the lead investor, including review and negotiation of core transaction documents and equity instruments, and negotiation of an investor side letter.

Key workstreams included governance and control protections, capital structure and dilution management (including adjustments to the proposed ESOP allocation), board and shareholder approvals required to authorize the transaction, and coordination of transaction closing. Aurum also supported the investor’s due diligence process.

“Cross-border growth rounds often succeed or fail on how cleanly the corporate setup, governance, and closing mechanics fit investor expectations”, said Sergey Ostrovskiy, Partner at Aurum. “Our role was to make the transaction executable without compromising long-term control or future fundraising flexibility”.