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Extension to ASIC’s ‘low doc’ relief for capital raisings

Corporate News - 24 September 2020

 
ASIC’s temporary ‘low doc’ relief for capital raisings, which was originally introduced on 2 April 2020 and set to expire on 2 October 2020, has been extended to 1 January 2021. Under the relief, certain ‘low doc’ offers (including rights offers, placements and share purchase plans) can be made to investors without a prospectus, even if they do not meet all the normal requirements. The relief also applies to issuing cleansing notices.  
 
As a reminder, under the relief, entities are able to do a ‘low doc’ offer if:

  • they have been suspended for up to 10 days in the 12 months before the offer; and
  • they were not suspended for more than five days in the period commencing 12 months before the offer and ending 19 March 2020 (when the Government changed its travel advice to “do not travel overseas”).

Any entities wishing to raise capital or require further advice in relation to any of the relief measures should contact us in our Perth office on +61 8 9321 4000 or our Melbourne office on +61 3 9111 9400 as we would be happy to assist.

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