What does this announcement mean?

[shyguy]

just wondering if you could explain the following for me...? it is a prospectus released for a particular company which i dont really understand... why would they do this?

"For the offer of 10,000 shares in the capital of the company at a price of $0.01 per share to raise up to $100.

This prospectus has been prepared for the purpose of Section 708A(11) of the Corporations Act to remove any trading restrictions on the sale of shares issued by the company prior to the closing date."

 

[pixel]

just wondering if you could explain the following for me...? it is a prospectus released for a particular company which i dont really understand... why would they do this?

"For the offer of 10,000 shares in the capital of the company at a price of $0.01 per share to raise up to $100.

This prospectus has been prepared for the purpose of Section 708A(11) of the Corporations Act to remove any trading restrictions on the sale of shares issued by the company prior to the closing date."

There are situations, where a company must publish a prospectus. On the other hand, you can only issue a prospectus when you offer shares for sale. The quoted share issue seems to be simply a means of getting the prospectus lodged, not a matter of capital raising.

If you need more confusion, read the Corporations Act: http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s708a.html
Section 708A(11) says

Sale offer of quoted securities--case 2
(11) The sale offer does not need disclosure to investors under this Part if:
(a) the relevant securities are in a class of securities that are quoted securities of the body; and
(b) either:
(i) a prospectus is lodged with ASIC on or after the day on which the relevant securities were issued but before the day on which the sale offer is made; or
(ii) a prospectus is lodged with ASIC before the day on which the relevant securities are issued and offers of securities that have been made under the prospectus are still open for acceptance on the day on which the relevant securities were issued; and
(c) the prospectus is for an offer of securities issued by the body that are in the same class of securities as the relevant securities.

 

[shyguy]

and what are the benefits of lodging a prospectus? why would they do so when its obviously not to raise capital?

 

[So_Cynical]

and what are the benefits of lodging a prospectus? why would they do so when its obviously not to raise capital?

Its a legal document, in that it has to be issued and has to contain certain things....same as many legal documents...its a big industry and all those university leavers (Accountants, Finance and Economics graduates) have to get a job doing nothing somewhere.

 

[Knobby22]

Its a legal document, in that it has to be issued and has to contain certain things....same as many legal documents...its a big industry and all those university leavers (Accountants, Finance and Economics graduates) have to get a job doing nothing somewhere.

That is so cynical!

 

[Tanaka]

Its a legal document, in that it has to be issued and has to contain certain things....same as many legal documents...its a big industry and all those university leavers (Accountants, Finance and Economics graduates) have to get a job doing nothing somewhere.

ha ha ha, funniest thing i've read all day!