Document background
The Preliminary Investment Memorandum is a critical document used in the early stages of capital raising activities, serving as a comprehensive yet preliminary information package for potential investors. It is typically prepared when a company is considering raising capital through private placement or before launching a full-scale investment offering. The document must comply with German securities laws, particularly the Wertpapierprospektgesetz (WpPG) and relevant EU regulations, while providing sufficient information for initial investor evaluation. The memorandum includes detailed company information, market analysis, financial data, risk factors, and preliminary investment terms, but typically contains appropriate disclaimers noting its non-binding nature. This document is an essential tool for testing market interest and initiating meaningful discussions with potential investors while maintaining legal compliance.
