07 Jan Crowd Sourced Funding Capital Raising Has Commenced
A number of small or medium-sized enterprises have already raised capital under the Australian government’s Crowd Sourced Funding Equity Raising Amendments to the Corporations Act.
The government has appointed seven Intermediaries (businesses with Australian Financial Services Licenses) to act as the “gatekeepers” for the legislation and to assist companies to be able to raise capital, once the company has finalised its Crowd Sourced Funding Offer Document.
One of those Intermediaries has advised that it has six listings at present which are all taking advantage of the change in the law that applied from 19 October 2018, which allows a small proprietary company (turnover up to $25 million per annum) to raise up to $5 million in a 12-month period, direct from the public without having to convert to an unlisted public company.
That Intermediary has indicated that they had acted for five companies prior to the legislation being changed and that four of those companies successfully raised an aggregate of about $5 million, with the largest capital raise being $2.8 million.
The seven Intermediaries appointed by ASIC are now fully operational operating under the new legislation and are keen to interview companies which aspire to raise capital.
If you are interested in attempting to raise share capital from the public, why not contact us for an initial interview and we will advise you the services that our firm can offer to you to assist your company on the Crowd Sourced Funding Equity Raising journey?