All businesses need capital injections at various stages in their evolution; whether just starting out, to cope with increased cash requirements during periods of expansion, to invest in new plant and equipment or to manage the effects of changes in the competitive environment.
Once your business is “investor ready”, BPS Advisory can help you to assess the most appropriate type of capital for your business requirements and actively assist in getting you the best outcome available.
The Corporations Act 2001 contains extensive rules and regulations regarding the sale of shares in Australian companies.
A public offer or “float” occurs when a company first makes available shares or securities to external investors and members of the public. While it can form part of a listing on a stock exchange, it doesn’t have to. A stock exchange listing can take place later.
Private offers are made under very specific rules set out in the Corporations Act and are commonly used to inject equity funds into developing companies that are not yet ready for public offers.
The three primary levels of offer documents that companies can use to raise equity funds from the public (in order of lowest to highest in terms of disclosure requirements) are the:
(i) Class Order Compliant Offer Document (“COCOD”);
(ii) Offer Information Statement (“OIS”); and
BPS Advisory can assess your situation and develop legally compliant documentation to help your company communicate its share offer in the most appropriate manner.
Where equity fundraising isn’t appropriate to your company’s needs, BPS Advisory can help you raise debt finance through the issue of promissory or debenture notes or, of course, through traditional financial institutions.
BPS Advisory works with both residential, commercial and private finance brokers on a regular basis and can provide you with access to quality financiers.
Staged Hybrid Transactions
There’s many ways to skin a cat – and getting funds into developing companies is a clear case in point.
The investor will always want to take the best deal that they can get and you’ll always want to give the least you have to.
That’s where staged hybrid transactions come in. BPS Advisory can design transactions using vehicles such as secured convertible notes with well defined trigger points to bring parties together in a manner that meets their respective needs.
If there’s value in a transaction, we’ll find a way to structure it.