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Investment Offer Letter for Hong Kong

Investment Offer Letter Template for Hong Kong

A formal document issued under Hong Kong law that outlines the terms and conditions of a proposed investment in a company. The letter serves as an official invitation to invest and includes key information such as investment amount, valuation, share class, investor rights, and conditions precedent. Governed by Hong Kong's Securities and Futures Ordinance and Companies Ordinance, this document forms the preliminary basis for investment negotiations and typically precedes more detailed investment agreements. It incorporates essential regulatory compliance elements specific to Hong Kong's financial regulatory framework.

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What is a Investment Offer Letter?

The Investment Offer Letter is a crucial document in Hong Kong's corporate investment landscape, typically used when a company is seeking to secure investment from potential investors. It serves as the initial formal documentation of investment terms and conditions, combining elements of both legal compliance and commercial terms. The document must comply with Hong Kong's regulatory framework, particularly the Securities and Futures Ordinance and Companies Ordinance, while being tailored to the specific investment scenario. An Investment Offer Letter typically precedes more detailed investment agreements and provides essential information about the investment opportunity, including valuation, share class, investor rights, and key terms. It's particularly important in Hong Kong's dynamic business environment where international investment flows require clear, compliant, and professionally structured investment documentation.

What sections should be included in a Investment Offer Letter?

1. Letterhead and Date: Company letterhead, date, and reference number if applicable

2. Recipient Details: Full name and address of the potential investor

3. Salutation: Formal greeting to the recipient

4. Investment Overview: Brief introduction of the investment opportunity and company background

5. Investment Terms: Key terms including investment amount, valuation, and type of securities offered

6. Use of Proceeds: Description of how the investment funds will be utilized

7. Key Rights: Summary of key investor rights, including voting rights and board representation if applicable

8. Timeline: Expected timeline for completion of the investment

9. Conditions Precedent: Key conditions that must be met before the investment can proceed

10. Confidentiality: Statement regarding the confidential nature of the offer

11. Offer Validity: Period for which the offer remains valid

12. Next Steps: Clear instructions on how to proceed if interested

13. Closing: Formal closing, signature block, and company details

What sections are optional to include in a Investment Offer Letter?

1. Anti-Dilution Protection: Include when offering preferential anti-dilution rights to the investor

2. Tag-Along Rights: Include when offering co-sale rights to the investor

3. Pre-emptive Rights: Include when offering rights to participate in future funding rounds

4. Dividend Rights: Include when specific dividend rights are being offered

5. Exit Rights: Include when specific provisions regarding company sale or IPO are being offered

6. Corporate Governance: Include when offering specific board or voting rights

7. Restrictive Covenants: Include when there are specific operational restrictions or requirements

What schedules should be included in a Investment Offer Letter?

1. Term Sheet Summary: Detailed summary of all investment terms in standard term sheet format

2. Cap Table: Current and post-investment capitalization table

3. Financial Summary: Key financial metrics and projections

4. Corporate Structure: Organization chart showing corporate structure and key subsidiaries

5. Due Diligence Checklist: List of required due diligence items and documents

6. Subscription Form: Form for accepting the investment offer and providing necessary investor details

7. KYC Requirements: List of required know-your-client documentation and forms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




























Clauses

























Relevant Industries

Financial Services

Technology

Real Estate

Manufacturing

E-commerce

Healthcare

Biotechnology

Infrastructure

Retail

Professional Services

Media and Entertainment

Telecommunications

Education

Clean Energy

Logistics

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Executive Management

Board of Directors

Investment

Corporate Secretary Office

Risk Management

Corporate Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Development Director

Investment Director

Legal Counsel

Company Secretary

Financial Controller

Investment Manager

Corporate Finance Manager

Compliance Officer

Board Director

Managing Director

Private Equity Manager

Venture Capital Manager

Investment Banker

Corporate Lawyer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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