The Pre-Emption Group Updates Guidance On Cashbox Placings
Today the Pre-Emption Group (“PEG”) announced its expectations with regard to issuers complying with the Pre-Emption Group Principles in light of the unparalleled economic situation caused by the coronavirus (COVID-19) pandemic. In order to help companies raise capital quickly in these difficult circumstances, PEG has recommended that, until 30 September 2020, investors should consider supporting non-pre-emptive issuances of up to 20% of a company’s issued share capital, where an issuer:
- fully explains the particular cirumstances surrounding the capital raise;
- consults with a representative sample of its major shareholders; and
- allocates the new shares with the involvement of company management on a basis that allows existing shareholders to subscribe for shares in proportion to their existing holdings.
This communication, which we believe may be of interest to our clients and friends of the firm, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice. This may be considered attorney advertising in some jurisdictions. Please refer to the firm's privacy notice for further details.
Copy link to share post