Small Share Issues Back Become More Realistic

Posted: 28th January 2011

Smaller issues of shares became a more practical proposition recently when amendments to the Prospectus Directive took effect at the end of 2010.

One of the big problems of ‘going to the market’ to raise share capital has always been that if the amount needed is small the cost of complying with the various rules for making such an offering was very high.

It is no longer necessary for a prospectus to be prepared where:

• securities are offered to fewer than 150 persons in the UK (previously 100); and

• where the total consideration for securities included in an offer is less than €5 million (previous €2.5 million).

There are other amendments aimed at simplifying offers of shares to employees in some circumstances.

If you are considering looking for equity capital or restructuring your business, contact us for advice.

There are many other changes.
See details.