A Company may wish to raise additional capital after Admission. Funds can be raised:
- from a private placement of Shares
- through an invitation for subscription to a mixture of shareholders and other investors
- from existing shareholders by either a rights issue or an open offer
While there is no obligation to offer new Shares to existing shareholders, Investbx requires that the following rules are observed:
- a Company must notify Investbx Limited in advance of its intention to raise additional capital and likely price range by submitting a Marketing Notification
- regular auctions will be suspended during the fundraising period
- where Shares are proposed to be issued at a price substantially below the last recorded bargain price on Investbx, Investbx Limited may require that a proportion are made available to existing shareholders
Companies whose primary trading facility is not Investbx should comply with the rules of their primary market regarding additional capital raisings and Investbx will admit additional shares once these have been admitted to the Company’s primary market.
If any further fundraising would result in a Company’s issued share capital increasing by more than 10%, a Company will be required to update its Annual Form.
It is possible that additional fundraisings (even relatively small ones which may trigger cumulative limits) will result in the need to issue a prospectus in compliance with FSMA (as amended) and the Prospectus Rules issued by the UKLA. It is recommended that before marketing or issuing any Shares, the Company takes advice from a Designated Professional.
Further information on documentary requirements for fundraisings can be found in the Documentation section.
