Instruction COSOB No. 23-03 of November 7, 2023, specifying the information to be contained in the information document published by the participatory investment advisor

REPUBLIC OF ALGERIA DEMOCRATIC AND POPULAR Financial Market Regulatory Authority Commission for the Organization and Supervision of Stock Exchange Operations

Instruction COSOB No. 23-03 of November 7, 2023, specifying the information to be contained in the information document to be published by the participatory investment advisor on their participatory investment advice platform.

Article 1: The purpose of this instruction is to specify the information that the participatory investment advisor must include in the information document published for each participatory investment project, with a view to the issuance of securities via the participatory investment advice platform, in accordance with Article 18 of COSOB Regulation No. 23-01 of 21 Ramadan 1444, corresponding to April 12, 2023, setting the conditions for approval, exercise, and control of participatory investment advisors.

Art. 2: The information document to be published by the participatory investment advisor for each participatory investment project must contain, at a minimum, the information mentioned in the annex to this instruction. These information must take into account the type of operation envisaged.

Art. 3: The information document must include the following "warning" in its preamble:

"This information document is not subject to the visa of the Commission for the Organization and Supervision of Stock Exchange Operations.

Participants are reminded that this information document has been subject to the due diligence applicable in this matter by the participatory investment advisor (name to be cited) approved by COSOB. However, no guarantee is given regarding the existence of a market to trade the issued securities, nor regarding their liquidity, nor their value. Furthermore, the prospects for the project's success do not constitute a guarantee of future income and may not correspond to the results that will be obtained. Thus, investors are reminded that the failure of the project may result in the partial or total loss of the invested amount."

Art. 4: This instruction enters into force as of the date of its signature.

Done in Algiers, on November 7, 2023

Youcef BOUZENADA

ANNEX MINIMUM INFORMATION TO APPEAR IN THE INFORMATION DOCUMENT TO BE PUBLISHED BY THE PARTICIPATORY INVESTMENT ADVISOR (PIA) DURING THE ISSUANCE OF SECURITIES VIA THE PARTICIPATORY INVESTMENT ADVICE PLATFORM

Warning on the cover page

"This information document is not subject to the visa of the Commission for the Organization and Supervision of Stock Exchange Operations.

Participants are reminded that this information document has been subject to the due diligence applicable in this matter by the participatory investment advisor (name to be cited) approved by COSOB. However, no guarantee is given regarding the existence of a market to trade the issued securities, nor regarding their liquidity, nor their value. Furthermore, the prospects for the project's success do not constitute a guarantee of future income and may not correspond to the results that will be obtained. Thus, investors are reminded that the failure of the project may result in the partial or total loss of the invested amount."

1. Information on the participatory investment advisor responsible for the placement (Name, address and approval number, commercial register, etc.);
2. Information concerning the characteristics of the securities subject to subscription;
3. Biography of the project owners, their education and diplomas, their experience, projects or inventions realized, labels and patents held, etc....;
4. A techno-economic study of the project highlighting at least the following information elements:
   • Presentation of the participatory investment project, the nature of the project, the products or services to be created, the socio-economic, cultural, or environmental impact of the project, the targeted consumers or users, etc....;
   • The total amount of the project, the funds to be collected in stages of the project, if applicable, eligible participants, the mode of participation, and the mode of repayment;
   • The minimum and maximum amount to be subscribed by each participant;
   • Details of fees related to the issuance, as well as subscription fees borne by the participant;
   • Targeted sector of activity, presentation and evolution of this sector, specific reasons allowing hope for the development of the company in this sector;
   • Presentation of the main financial and management indicators for the last two fiscal years;
   • Quantitative information, if possible, on production volume, turnover, and expected results, and the forecasted income statement;
   • Anticipated supplies and outlets;

1 The PIA, in concert with the project owner, may provide other information elements that it deems relevant or useful.

5. Risk factors;
6. Litigation;
7. Signature and function of the persons (project owner) who assume responsibility for the information document:

The signature of the person or persons who assume responsibility for the information document must be preceded by the following formula:

"We attest that this information document faithfully and completely describes the organization of the company and the use that will be made of the collected funds.

However, participants are reminded that this information document is not subject to the visa of the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB)";

8. Signature of the participatory investment advisor:

The signature of the participatory investment advisor must be preceded by the following formula:

"We have proceeded to the verification of the information provided in this information document by performing the due diligence applicable in this matter, in accordance with COSOB Instruction No. 23-02 of November 7, 2023, setting the due diligence that the participatory investment advisor must perform during the selection of participatory investment projects. We have no observations to make regarding the consistency and relevance of the information provided."