Common issues when preparing an Information Memorandum

It ultimately depends on the issuer, but common issues which arise are:

  • the Information Memorandum contains forward-looking statements or representations (i.e. budgets or predictions on future events) which are not based on reasonable assumptions
  • the Information Memorandum contains statements or representations which cannot be independently verified
  • the Information Memorandum does not include information, or quality of information, that would otherwise be provided to investors in similar offers
  • the Information Memorandum only considers the initial offer and capital raise and does not build in useful investor relations and governance procedures to govern the ongoing relationship between the issuer and investors

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