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Article 8
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The issuance plan shall list the following items:
- The date of issuance and duration of the warrants.
- Detailed information on the underlying instruments or basket of instruments. If the underlying instrument is a domestic stock for which the CPA audited or reviewed financial report of the issuer of said stock for the most recent period shows losses, a statement of the reason for issuing warrants on the underlying instrument, if the underlying instrument is a foreign stock or depositary receipt, a statement on the status of their liquidity; if the underlying instrument is a future, a statement of name and delivery month of the futures contract.
- The type of call (put) warrant, units issued, and total value of the issue. In the case of an issue of extendable callable bull contracts or extendable callable bear contracts, the type of warrant shall be annotated with the wording "extendable".
- Terms and conditions of issuance, including issuance price, strike price or strike point, exercise period, and the number of shares (or beneficial interest units, or depositary receipt units, or index points or futures points) etc. represented by each issuance unit. In the case of extendable callable bull or bear contracts, the information set forth in Article 11, subparagraph H, item d of the TWSE Rules Governing Review of Call (Put) Warrant Listings shall be stated.
- The method of calculating the issuance price, including the price or point of the underlying instrument, strike price or strike point, duration of the warrants, interest rate, volatility, and other reference factors, and a comparison table showing other warrants in the preceding year with the same underlying instrument. However, for issuance of callable bull contracts or callable bear contracts, the issuance price shall be calculated pursuant to the provisions under Article 11, subparagraph H of the TWSE Rules Governing Review of Call (Put) Warrant Listings.
- Issuance of capped call or put warrants (or callable bull or bear contracts) shall, conform to the provisions of the preceding five subparagraphs and, in addition, the cap or knock-out price or point shall be specified, and matters prescribed in Article 11, subparagraph H, item f of the TWSE Rules Governing Review of Call (Put) Warrant Listings shall be stated in a prominent typeface. In the case of extendable contracts, the matters required for extension under Article 7, subparagraph C of the TWSE Procedures for Review of Call (Put) Warrant Listings shall be included.
- The required particulars as specified in Article 8 of the TWSE Operating Rules Governing Liquidity Providers for Call (Put) Warrants.
- Procedures for exercising the warrants, and the terms requiring cancellation of call (put) warrants when surrendered for exercise.
- Procedures for exercise/delivery when the warrant holder exercises the option. When the issuer may opt for cash settlement of call warrants to be paid in securities, or when the warrant holder may opt for cash settlement of put warrants to be paid in securities, the conditions shall be set off in a distinctive typeface.
- Strategies for offsetting foreseeable risks.
- Stipulations regarding adjustment of the strike price of the call (put) warrants and related matters due to distributions of dividends or bonuses, increases or decreases in capital, stock splits or consolidations, or other related action by the issuer of the underlying securities, or the distribution of dividends or other related action on the underlying ETF by the securities investment trust enterprise (SITE), on the underlying futures ETF by the futures trust enterprise, or on the underlying offshore ETF by the offshore fund manager or its designated institution. If the issuer's adjustments are not made according to the TWSE reference formula (see attachment), that fact shall be noted in a distinctive typeface in the public offering prospectus. If the underlying instrument is a foreign security, the issuer shall adopt its own formula for adjustment.
- The methods for handling a merger by the issuer of the underlying securities, alteration of the trading method, halt of trading, suspension of sale, or delisting of the underlying securities, or the delisting of the ETF or futures ETF as a result of dissolution or bankruptcy of the SITE or futures trust enterprise or a voidance of the approval, or the announcement of delisting by the TWSE of the beneficial certificates, fund shares, or investment units of an underlying offshore ETF, or the discontinuation, by the provider of the underlying index, of compilation of the index, or a halt of trading, suspension of sale, or delisting imposed by the TAIFEX on the underlying future. However, if the delisting of the stock results from the issuer of the underlying securities applying for the stock to be traded on the TPEx, the call (put) warrants shall continue to be traded on the TWSE until the last trading day.
- The methods for handling the listing of the call (put) warrants or the delisting, suspension of sale, or halt of trading of the warrants by the stock exchange.
- A clause stating that from two months after the initial listing (exclusive) to two months before the expiration (exclusive) of a call (put) warrant except capped call or put warrants, the issuer may apply for delisting of the warrant if there are no outstanding issuance units and the latest strike price or strike point is at least 20% in-the-money or out-of-the-money.
- Clarification regarding whether or not there are plans for a reverse issue of call (put) warrants against the same underlying instrument within the coming three months.
- Source of data and method of disclosure for the halt of trading, suspension of sale, or delisting, of foreign underlying securities by the securities exchange on which the security is traded, or for the suspension of compilation of the underlying foreign index as announced by the index provider.
- Other items required by the competent authority or the TWSE.
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