Regional growth - private company access to equity crowd funding
The long awaited extension of the Corporations Act Crowd-sourced Equity Funding (CSF) regime to private companies is now in place.
Previously limited to public companies the CSF is particularly attractive for proprietary limited companies meeting the scheme’s requirements. We believe the CSF regime is an attractive for regional innovative and early-stage companies that may have a local following, but not necessarily the access to debt (via banks and other financial institutions) or other forms of equity funding they need to grow.
In summary
Eligible companies can raise up to $5 million in any 12-month period.
Private companies, with less than $25 million in annual revenue and $25 million in consolidated gross assets, that have their principal place of business and a majority of directors in Australia, are eligible to participate.
Retail investors are limited to investing $10,000 per company in any 12-month period.
Offers can only be made via licensed CSF intermediary platforms.
A CSF Offer Document is required which includes prescribed minimum information.
There are audit and notification requirements for private companies who raise cumulatively more than $3 million in CSF capital
Talk to us about your options for fueling your business growth through equity crowd funding.
Paul Gray
Principal Lawyer
T 03 5225 5231
E pgray@ha.legal
