Prospectus

Question 1

How to determine when a prospectus is needed?

Answer 1

Test 1 - offer of transferable securities made to the public in the UK?

AND/OR

Test 2 - regulated market?

Question 2

What market is NOT a ‘regulated market’?

Answer 2

AIM is NOT a regulated market

Question 3

What are ‘qualified investors’?

Answer 3

institutional investors only

Question 4

What is a price-range prospectus?

Answer 4

• retail offer

- final in every way except price - a price range is used instead of exact price

Question 5

What is a pathfinder?

Answer 5

• institutional offer ONLY
• NOT a prospectus, so not approved by FCA
• near-final draft of a prospectus, but does not contain share price and may not have price-range either
• used for marketing purposes
• prospectus will be published later on

Question 6

What 2 kinds of due diligence is necessary in the publication of a prospectus?

Answer 6

1) Financial DD

2) Legal DD