best-efforts basis

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Best-Efforts Basis

An agreement between an underwriter and an issuer in which the underwriter agrees to place as much of an offering with investors as possible, but is not responsible for any portion of the offering it fails to sell. For example, suppose an issuer makes a new issue of 100,000 shares. The issuer may make a best effort basis agreement with an underwriting firm for the underwriter to sell those shares to investors. If the underwriting firm only sells 90,000, however, it is not required to buy the remaining 10,000 from the issuer. This reduces the risk to the underwriter; to reduce the risk to the issuer, most best efforts are all-or-none offerings.

best-efforts basis

1. An agreement by an investment banker to do its best to oversee but not guarantee the sale of a security issue in the primary market. See also underwriter.
2. An investor's market order to buy or sell a security in which the brokerage firm agrees to obtain the best possible price.
References in periodicals archive ?
The common shares are being offered in each of the provinces of Canada other than Quebec on a firm commitment basis and in the United States on a best efforts basis, with no minimum number or dollar amount requirement.
The cash equivalent credits may be used in combination with cash, to obtain, if and when available, on a best efforts basis, certain goods and services used in the daily ongoing business of Kading Companies as well as providing the potential to satisfy certain other obligations of the Company from time and time.
and other selected NASD broker-dealers on a best efforts basis.
Since May 2006, Delta has been appointed as DBSI's nonexclusive independent sales agent to solicit orders for DBSI's products, on a best efforts basis and at Delta's own expense.
The capital raise by Great Eastern is on a best efforts basis currently structured as Series A Medium Term Notes.
The Company has signed engagement letters with two Canadian underwriters to act as co-placement agents on a best efforts basis in connection with a proposed syndicated private placement of the Company's securities to non-US residents for gross proceeds of up to US$6,000,000 (the "Canadian Offering"), with an over-allotment option of up to 15% of the number of units offered at closing.
Wellington West") will act as agent on a commercially reasonable best efforts basis.
In conjunction with this, Africo will undertake, on a best efforts basis, to raise sufficient funds to allow it to commence development of the Kalukundi deposit, pursuant to and contingent upon, completion of a bankable feasibility study, which is due for completion before the end of April, 2006.
The private placement will consist of up to 1,500,000 "flow-through" common shares of Exall (the "Flow-Through Shares") offered on a best efforts basis at a price of $2.
has been retained to act as lead agent (the "Agent") in connection with the Offering, to be conducted on a best efforts basis.
the "Agent") for a private placement on a best efforts basis for a maximum of 8,600,000 common shares for gross proceeds of $6,020,000.