GOOD TO KNOW

Initial email (Translated):

"However, another customer, an EAM from Lugano (GmbH), who already operates two AMCs via two different G2 issuers, is considering launching a bond on his GmbH in order to implement internal trading models and to be able to show further proof of concepts. His investors are Italian and partly retail. Would something like this be feasible?

In my hand notes from our last meeting I had noted:

- The company needs to be "onboarded" by you.

- The prospectus has to be prepared in English (template available from you - the client should consult a lawyer for the finish).

- These bonds are subject to VST.

- No Tax Advice from ISP

- Minimum size EUR 5 million (or CHF?)

- KYC & Business Case to be submitted

- Purpose must be clearly defined in Loan Agreement (incl. Anti Bribery and Corruption clause / template?)

- Audit obligation on the company (known auditor)

- No sports business

- Gessler Capital fees must be disclosed to the client.

- Regarding the ISP fees, I had noted for the bond: Setup min CHF 5k (min 5 million bond size) and Running 20 bps p.a. min CHF 10k p.a.. Are there any other fees?

..."

With these solutions, we have to add a fee on top of the ISP fees. TBD with VG.

Reto from ISP (Translated feedback) / 06.04.2021

"Regarding ISIN for CH company: The company cannot be a limited liability company, we only do mandates for public companies. Likewise, the investors must be either professional or institutional investors, but certainly not retail clients.

If the company issues a bond, there will most likely be no need for a loan agreement, because the money is already with the company. Regarding further fees, possible event fees for coupon payment have to be considered (CHF 1'000 flat)."