Menu
LAW CHANGE CREATES EXCITING NEW CAPITAL RAISING OPTIONS
Pattern light green 400x401

On 1 April 2014, the first phase of the Financial Markets Conduct Act 2013 will commence. This phase includes a number of new exemptions from securities law that provide exciting new capital raising options.

The most significant change is the new ‘small offer’ exemption. This will allow companies to raise up to $2 million from up to 20 investors in a 12 month period, without the need for a prospectus or investment statement. The exemption provides very significant time and cost savings over the current law, and will allow businesses to raise small amounts of capital quickly and with minimal fuss.

Offers will need to be ‘personal offers’ and advertising will be restricted. However, the new exemption is otherwise very flexible, and with the correct advice provides significant scope to deliver a company’s immediate and future capital requirements.

Other new exemptions from 1 April include:

  • greatly simplified rules for employee share purchase schemes, meaning that offering shares to key employees will be far easier than it has ever been before
  • new rules that will enable crowd funding and peer-to-peer lending (once providers have been licensed).

Bringing in additional investors adds complexity and risk. Getting the right corporate structure and governance arrangements in place is important. We are already working with clients to develop offer structures that take advantage of the new rules.

If you are interested in hearing more, please contact Martin Dalgleish on +64 4 498 0827 , Chris Parke on +64 9 375 1157, or Nick Summerfield on +64 4 498 0876. 

Share:

RELATED PEOPLE

View All

ARTICLES RELATED TO CORPORATE AND M&A

View All