The National Equities Exchange and Quotations Company Limited ("NEEQ") has recently prepared and issued the Answers to Common Questions About Stock Offerings of NEEQ-listed Companies (IV) – Special Investment Clauses (the "Q&A (IV)"), immediately effective from the date of issuance.
The Q&A (IV) provides clarity on five questions which include "what regulatory requirements shall be fulfilled for special investment clauses as agreed upon when investors participate in stock offerings of a listed company?" and "how to perform internal discussion procedures for a NEEQ-listed company for special investment clauses as agreed upon with investors when they participate in its stock offerings". Among others, the Q&A (IV) requires that special investment clauses as agreed upon when investors participate in stock offerings of a NEEQ-listed company shall not fall under any of eight circumstances, including "restricting the price at which or the scope of targets among whom stocks could be offered by the NEEQ-listed company in the future to raise funds". Special investment clauses, as an important part of the stock offering plan, shall be discussed and passed by the NEEQ-listed company's board of directors and at the shareholder meetings.