On 1 May 2020, the ASX released ASX Compliance Update Number 05/20, which outlines further guidance and provides more relief, in light of challenges currently faced by ASX listed companies due to the COVID-19 pandemic. Important changes apply in relation to the obligations and requirements of ASX listed companies when issuing equity securities and during capital raisings. In particular, the key guidance and relief from the ASX are as follows:
- Convertible notes, collateral securities and listing rule 6.1 – ASX strongly recommends that a listed entity proposing to issue any type of equity securities, other than ordinary securities, preference securities and convertible notes with market-standard terms attached, consult with ASX at the earliest opportunity so that ASX can consider whether the terms of issue of those securities meet the requirements of listing rule 6.1;
- The need to engage early with ASX on capital raisings proposing to rely on the Class Waivers – As detailed in our Corporate Corner Presentation on Wednesday, 29 April 2020, ASX has outlined the need for ASX listed companies to engage early with them on capital raisings proposing to rely on the Class Waivers. ASX has also provided further guidance as to when it is likely to withhold the benefit of the Class Waivers for capital raisings, especially where the capital raising is not specifically COVID-19 related and not urgently needed; and
- ASX relief on annual listing fees – ASX is providing relief to ASX listed companies, by staggering the annual listing fees for FY 2021 over six months and payable by all listed entities in two equal instalments, instead of the usual one. The first instalment is due at the end of July 2020 and the second instalment is due at the end of January 2021.
GRT Lawyers’ Scott Standen and Glenn Vassallo have summarised the new ASX requirements. Click here to read the complete article.
If you have any questions in relation to the above article, please phone Scott Standen on 0447 790 009 or Glenn Vassallo on 0422 857 760.