If you make changes to your subscription agreement after some investors have signed, DealMaker will have the benefit of instantaneously delivering the new document to all unsigned investors. You will no longer have signatures coming back on old drafts.
You will want to consider the materiality of these changes when determining if investors who have already signed need to re-sign.
If you are amending the terms of a deal in terms of price or a condition, then the change is material to the essence of the contract, and then the investor should likely re-sign. If changes are formatting, stylistic or a representation or warranty that do not alter the essence of the contract, resigning is likely not necessary. You will also want to consider how an investor may perceive having to resign an agreement with little to no alteration and the risks involved in the investor committing to their subscription again.
Speaking with your counsel on this is highly recommended and discussing the risk/reward factors when assessing whether re-signing is required.
Remember that “slip sheeting” reformatted agreements outside of the portal will result in different agreements existing in the company’s records versus the investor’s portal, and is generally not an advisable practice, as the contract signed by the investor is the valid agreement. Click here for more information on how e-signature works and it’s secure legal validity.