Explanatory Memorandum

Explanatory Memorandum

The Prospectus.com team can assist your company with writing and developing your explanatory memorandum. Our team has been involved in the writing and development of hundreds of investor memorandums, spanning many countries and industries.

An Explanatory Memorandum is a document created by a company that plans to issue securities, often in the form of equity, and quite common for open-ended and closed-ended funds such as a hedge funds and mutual funds.  The “EM”, as it is also referred to, is often compared to other offering documents commonly employed throughout the financial world, transcending jurisdictions, such as the offering memorandum or private placement memorandum or even the prospectus.

An EM will have a similar outline as other memoranda in the marketplace, but in various jurisdictions the rules are different for an EM in comparison to a traditional prospectus.

What’s Included in the Explanatory Memorandum

One of the most important features of any EM is the terms of the offering:  what is the issuer or company offering the investor(s) for their capital?  The memorandum will provide reliable information regarding the offering price, the type of securities being offered, and other terms of the securities including:

  • Organizational structure of fund
  • Investment objective
  • Company directory
  • Offering details
  • Risk factors
  • Management and fees
  • Conflicts of interest
  • Description of securities
  • Redemptions
  • Net Asset Value
  • Tax matters
  • Legal and administrator
  • Team and Board
  • Financials
  • Information on how to subscribe
  • And much more

 

Prospectus.com

Our team at Prospectus.com can ensure your memorandum is written in a professional and compelling manner.  If your fund or company requires an explanatory memorandum, feel free to reach out to us anytime for a free consultation.

 

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Explanatory Memorandum


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Explanatory Memorandum