CFP-2.1.2
The minimum information required in crowdfunding offer statement, includes:
(a) General risk warning about crowdfunding:
1. crowdfunding is risky, companies using this facility include new or rapidly growing ventures and lending or investment in these types of ventures is speculative and carries high risks;
2. you may lose your entire investment, and you should be in a position to bear this risk without undue hardship; and
3. for equity crowdfunding offers: the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid which means you are unlikely to be able to sell your shares quickly or at all.
(b) Information about the company (i.e. the borrower or issuer):
1. company details: identity and legal form;
2. business nature and organisational structure;
3. main risks associated with the business, products, industry/sector/geography, legal/regulatory concerns;
4. ownership capital structure;
5. financial statements (audited statements for existing companies required to conduct audit as per local laws, and projected financial statements);
6. key financial ratios;
7. directors and senior managers;
8. contact details; and
9. details of convictions, penalties or administrative actions against the company and its directors or senior managers.
(a) Information about the offer:
1. details of the financing facility, interest/profit rates, maturity, payment terms, guarantee/collateral etc. (for financing crowdfunding offers);
2. the rights associated with the shares on offer (e.g. voting and dividends), their custody and registration arrangements and buyback commitments (for equity crowdfunding offers);
3. the offer period, the offer size, the maximum subscription under the offer and the basis for allotment;
4. how the funds raised will be used;
5. Any situations of actual or potential conflict of interest involving the direct and indirect interest of a director, substantial shareholder etc.
(b) Information about investor rights:
1. the right of retail clients to withdraw commitments;
2. the availability of a communication facility on the platform and other methods to contact the company; and
3. the applicable reporting and corporate governance obligations in accordance with the law.
Added: April 2022