Investor Presentaiton
Pre-IPO equity investment (cont'd)
PERMISSIBILITY OF SPECIAL RIGHTS/OBLIGATIONS (cont'd)
Profit Guarantee
Profit guarantee allowed
If it is settled by a shareholder (rather than the listing applicant) and the compensation is
not linked to the market price or capitalisation of the shares.
Profit guarantee disallowed
O
If the profit guarantee is to be settled by the applicant or is linked to the market price or
market capitalisation of the shares.
▸ Negative Pledges - Disallowed: Negative pledges will generally be disallowed UNLESS they are
widely accepted provisions in loan agreements, are not egregious and do not contravene the
fairness principle in the Listing Rules.
Widely accepted provisions include:
pledges not to create or effect any mortgage, charge, pledge, lien or other security interest
on an applicant's assets and revenues; and
pledges not to dispose of any interest in the economic rights or entitlements of a share the
controlling shareholder owns or controls to any person.
CHARLTONS
易周律师行
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