In the second half of 2016, there were a number of key developments in the fundraising space:
- Changes to the ASX Listing Rules on disclosure and admission requirements;
- ASIC updated its guidance on prospectuses with respect to disclosing forward looking statements in the mining and resources industry, business model information and the inclusion of historical acquisitions – Regulatory Guide 228: Prospectuses: Effective disclosure for retail investors (RG228);
- ASIC released a report on the marketing of IPOs focussing on risks from the use of non-traditional marketing methods such as through social media and foreign language publications by emerging market issuers – Report 494: Marketing practices in initial public offerings of securities (REP 494); and
- ASIC raised concerns with termination rights in underwriting agreements.
These are summarised in ASIC’s recent report: Report 512: ASIC regulation of corporate finance: July to December 2016.
In the 3 months to 31 December 2016, the ASX declined various requests for waiver of the ASX Listing Rules by companies seeking to extend the time for the issue of shares or other securities beyond the period 3 months after the date of shareholder approval required by ASX LR 7.3.2 and beyond the period 1 month after the date of shareholder approval required by ASX LR 10.13.3.
These are summarised in Listing and Waiver Application Declined by ASX 1 October 2016 - 31 December 2016.
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