Peter is an executive director of Generation X Ltd$,$ a company registered in England and Wales  

specializing in custom mouse model generation for the treatment of human 

 

diseases. I have just had a quick chat with him over the phone, and we agreed to 

 

meet tomorrow afternoon.

 

Peter wants to raise money for the company. The money will be used to develop 

 

a new genome editing technology. He will be working with a team of scientists. 

 

The company intends to license such a technology to several other institutions, 

 

 not only in the UK$,$ but also overseas. 

 

If everything goes well, the company hopes to be in a position to license the new 

 

 technology in five years time. 

 

Would you be so kind as to put together a draft note for me to use as the basis of 

 

my responses to Peter?

 

Many thanks!

 

Muhammad

 

From: Peter Brown 

 

To: Muhammad Ali 

 

Cc: Ayesha Khan 

 

Subject: Our expansion plans

 

Dear Muhammad,

 

It was good to speak to you earlier today. As promised, here are some brief details 

 

about our expansion plans.

 

Over the last three years, I have been working with a group of scientists from

 

New York, Berlin, and Geneva. They are confident that, through effective 

 

teamwork, we could potentially revolutionise the market for genome editing 

 

technology. 

 

The board of directors has decided that, in order to make that happen, we will 

 

have to establish some research centres in other countries. The idea is to set up 

 

some subsidiaries in the United States, Germany, and Switzerland.

 

We have already signed some memoranda of understanding with several 

 

academic institutions, which have expressed their interest in acquiring a licence 

 

to use our future technology as soon as it is ready.

 

$5$

 

During our last board meeting, we also considered floating the company on the 

 

London Stock Exchange, but we concluded that we would need to obtain external 

 

legal advice before making a decision in that regard. 

 

 Our in$-$house counsel, Ayesha Khan, who reads in copy, will be happy to send  

 

you all the relevant documents you may require in due course. In the meantime, 

 

the directors have prepared the following list of questions:

 

 $($a$)$ What are the different ways in which Generation X Ltd might be able  

 

to raise the capital it needs in order to support its international 

 

expansion plans in the United States, Germany, and Switzerland?

 

 $($b$)$ What is the difference between equity finance and debt finance? And  

 

what are the advantages and disadvantages of raising equity as 

 

opposed to debt finance?

 

 $($c$)$ What would Generation X Ltd have to do and what document$($s$)$  

 

would it need to prepare in order to offer its shares to the public for 

 

the first time?

 

 $($d$)$ In addition to the legal team, who are likely to be the key members of 

 

an international corporate finance team? And what would they be 

 

 expected to do$?$