Where to go for capital? The options, the rules, the requirements for each

You’ve decided to offer equity in your company to investors in order to grow your business — but what’s the next step you need to take? In the third of this six-part series on raising capital, corporate advisor Dr Mark Rainbird discusses the avenues you have to distribute your offer to interested parties.

When you boil down the act of raising capital — regardless of how you choose to do it — it’s essentially about finding people who will support your company by giving you cash for shares. That’s it. There are several different ways that one can go about finding these individuals, however, and they all have their advantages and disadvantages.

Know Your Rules for Individuals

Investors don’t necessarily need to be obtained via an established platform like the ASX.

While you can make a personal offer to just about anyone you know, there are varying levels of disclosure that need to be made, as outlined in Section 708 of the Corporations Act.

While I’d strongly advise reading through the section yourself, the main thrust of it is that you don’t need to make disclosure if:

• the offer is considered to be a personal one, or;

• the investors are deemed sophisticated, or;

• the offer is made to someone within the management of the company itself (or a member of their family), or;

• the offer is made to a trust or company controlled by a person that meets some of the qualities that define sophisticated investors.

There are, however, further restrictions on these disclosure rules. Despite sounding like it might be a new cricket competition, the Twenty Twelve rule is one of the most significant within the capital raiser’s handbook.

Essentially, this dictates that when approaching retail investors, only 20 “concessions” are available to retail investors in a 12 month period. Additionally, Section 734 of the Corporations Act dictates that companies acquiring investors in accordance with the Twenty Twelve rule are unable to advertise or publicise their offer. It is important to note that you cannot “induce people to apply for shares.”

For more information please email BlueMount Capital

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 BlueMount Capital provides venture capital raising and Introduction services to companies seeking capital in the unlisted, pre-IPO and listed capital markets. 

Queensland Company Leads Green Revolution

PolyGenomX (ASSOB Code: PGX), based on the Gold Coast, has pioneered a range ofprocesses that deliver faster growth and higher yields fromplants vital to a range of commercial applications and sustainable industries. 

The company’s ability to rapidly propagate fast-growing, robust and climate-tough trees and vegetation is a game-changer for the mass production of bio-fuels and feedstocks, says PolyGenomX managing director Peter Rowe. 

 "PolyGenomX has developed technology that allows us to activate dormant parts of a plant’s DNA without genetically modifying it in any way. 

 "This provides the ability to turbocharge certain characteristics naturally existing within a plant such as rapid growth properties and predispositionsto thrive in various environments and soils.

PolyGenomX will license the superior strains of plants developed to ethical producers, farmers and other partners involved in the production of commercial crops and environmental restoration.

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BlueMount Capital provides venture capital raising and Introduction services to companies seeking capital in the unlisted, pre-IPO and listed capital markets. 

For more information please email BlueMount Capital

 

 

Raising Capital: How to Get the Money You Need

Raising Capital: How to Get the Money You Need from Alternate Sources and Empower your Capital Raising with Crowd Sourcing, Social Proof and Social Media

In May, June  and July ASSOB will be running an updated version of the very successful seminars that were run last year. The first round of seminars in Sydney, Melbourne and Brisbane have all been booked out.
"Your presentation was excellent, and greatly appreciated, especially your understanding of social proof!  It is exciting. Thank you for sharing." K.S. Newcastle
"Excellent presentation today, I found it very informative." P.B. Ballarat
The updated version features the latest techniques in the areas of Crowd Sourcing, Social Media and Social Proof.
Social Proof is the most important driver when it comes to raising capital.
This is a good opportunity to invite your prospective clients along to a professional and convincing seminar on how your clients can raise funds on the ASSOB Capital Raising Platform.

Millions of dollars are raised through the ASSOB Platform annually. Our CEO Paul Niederer will address the functionalities, methodology and the opportunities that the ASSOB Platform has within the capital raising market in Australia.

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BlueMount Capital provides venture capital raising and Introduction services to companies seeking capital in the unlisted, pre-IPO and listed capital markets. 

For more information please email BlueMount Capital

 

 

Goal of 100 companies to receive equity funding in the 2011-12 financial year

The Australian Small Scale Offerings Board (ASSOB), Australia's unique capital raising platform for equity raisings for smaller companies, has set itself the target of helping 100 companies to raise up to $100 million in the 2011-12 financial year.

Conceived more than 20 years ago as an innovative mechanism for companies to raise equity capital, ASSOB has begun to accelerate its growth of new capital raisings in the past five years, having helped more than 200 companies to obtain in excess of $130 million in new equity capital during that time.

The CEO of ASSOB, Paul Niederer, commented that the GFC had exacerbated the difficulties that small companies faced in obtaining finance from traditional sources.   "Unless you had an asset such as a house with which to anchor your loan, the banks were simply not interested in making non-asset based lending to smaller businesses.  In effect, if business owners did not have a physical asset as collateral for a loan, they have generally found banks to be pretty unsympathetic to their financing needs."

ASSOB's capital raising forums will be held in Melbourne on Thursday afternoon, May 19; in Sydney on Wednesday, May 25^th;  Brisbane June 22^nd,  Adelaide 5^th & 6^th of July and Perth 6^th & 7^th of July. 

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BlueMount Capital provides venture capital raising and Introduction services to companies seeking capital in the unlisted, pre-IPO and listed capital markets.

For more information please email BlueMount Capital