For Marinomed Biotech AG Prospectus

$($a$)$ What does the firm do and what are the critical risk factors?

This question is based on the consideration that an investor should know which business lines

the company operates, what the growth potentials might be$,$ but also which negative scenarios

may occur $($risk factors$).$ An IPO prospectus contains a separate section for these risk factors.

It is important to evaluate the firm's growth potential and the attractiveness of the market. Many

prospectuses start with an abstract in which the activities of the firm are described.

It is e$.$g$.$ important to distinguish between service related and production related companies.

From this an investor can infer whether revenues and profits can mainly be increased be ex$-$

panding production capacities $($machinery$)$ or by additional staff. It is also important whether

the firm makes unique products or services, both imply higher margins, or whether it makes

"only" mass$-$products in a market with strong competition. Patents can be an indication for

unique goods.

$($b$)$ How attractive is the market in which the firm operates?

The prospectus delivers also information on the market in which the firm acts. E$.$g$.,$ does this

market provide expansion possibilities? If the industry is stagnating the firm can only grow if

it succeeds in a displacement competition. In a growing market an assessment on how mature

the market is can be of relevance. If the actual size of the market is small, the forecast of a high

growth potential in the future will typically be connected with $($higher$)$ risks $($e$.$g$.$ if the ac$-$

ceptance of a new technology by potential users is necessary$).$

$($c$)$ How does the firm earn its money or plans to earn it's money?

This point is of particular importance with regard to the future share price performance. In the

long run only those firms will experience a positive development on the stock market that are

in a position to earn profits and to continuously increase earnings. Up to what extent this is

possible depends strongly on how revenues are generated. E$.$g$.,$ if a firm sales products it has

developed by its own, the profit potential is normally higher compared to only selling external

developed products. Also, the performance of services creates usually higher margins than just

selling goods. The section "Business" $("$Business Activities"$)$ also contains detailed information

on this topic.

$4$

$($d$)$ Why does the firm go public?

Is the IPO motivated to finance future growth by additional capital? The prospectus contains

information whether also new shares are sold during the IPO and how large the fraction of the

new shares is$.$ Often the prospectus provides information on the usage of the issue proceeds.

$($e$)$ Who directs the firm and how competent is the management?

The success of a company depends significantly on the qualification of the management. The

curriculum vitae of directors and executive officers permits a first assessment, whether entre$-$

preneurial and industry specific experiences are present. E$.$g$.,$ the chief finance officer should

ideally have experiences in the fields controlling and accounting. The management is intro$-$

duced in the section "management and employees" and$/$or "the company". The number of di$-$

rectors should correspond to the size of the company, i$.$e$.$ the field of responsibility should not

be too large.

$($f$)$ Who are the existing shareholders and how do$/$will they behave at the IPO?

The shareholder structure and its planned changes during the IPO can provide information on

at least the following points:

$$ Does the existing shareholder structure consist of strategic partners that have already in

an early stage believed in the firm's concept, like e$.$g$.$ venture capitalists $($VCs$))?$ This can

influence the equity story in a positive way. A VC has already verified the firm's business

model and has assisted the management in developing the firm. A negative aspect of VCs

can be that they may sell part or all of their shares after the IPO.

$$ Does the management or other employees belong to existing shareholders? This can be a

positive aspect as it documents that they belief in their firm. Very important is the lookup

period $($Haltefrist$).$