801
This Chapter deals with issuers on Catalist changing their capital either by issuing additional equity securities or adjusting existing capital. It also sets out the requirements and procedures for listing additional equity securities.
Unless otherwise stated, the provisions in this Chapter will apply to the issue of shares out of treasury, and the issuer must submit to the Exchange a confirmation of compliance with the relevant provisions of this Chapter.
Amended on 7 February 20207 February 2020.803
An issuer must not issue securities to transfer a controlling interest without prior approval of shareholders in general meeting.
804
Except in the case of an issue made on a pro rata basis to shareholders or a scheme referred to in Part VIII of this Chapter, no director of an issuer, or associate of the director, may participate directly or indirectly in an issue of equity securities or convertible securities unless shareholders in general meeting have approved the specific allotment. Such directors and associates must abstain from exercising any voting rights on the matter. The notice of meeting must state:
805
Except as provided in Rule 806, an issuer must obtain the prior approval of shareholders in general meeting for the following:
806
Amended on 31 March 201731 March 2017 and 7 February 20207 February 2020.
807
If shareholders of an issuer are offered a specific entitlement in a new issue of securities of the issuer's subsidiary or in securities of the issuer's subsidiary about to be floated, such entitlement must be on a pro-rata basis with no restriction on the number of shares held before entitlements accrue.
Amended on 29 September 201129 September 2011.
808
Once the basis of an entitlement is declared, the issuer must not make any alterations to such entitlement except with the approval of the Exchange.
Part IV Issue of Shares, Company Warrants and Convertible Securities for Cash (Other than Rights Issue)
809
An issuer may issue shares, company warrants or other convertible securities for cash other than by way of a rights issue.
810
Amended on 29 September 201129 September 2011.
811
Amended on 29 September 201129 September 2011.
812
Amended on 29 September 201129 September 2011.
813
An issuer may borrow shares from its substantial shareholder to facilitate an issue of shares for cash provided that the substantial shareholder does not receive any financial benefit (directly or indirectly) from the arrangement.
814
Principal Terms of the Issue | Description |
Price | |
Discount (specifying benchmarks and periods) | |
Allotment Ratio | |
Use of Proceeds | |
Purpose of Issue |
Refer to Appendix 8A — Disclosure Requirements for Rights Issue or Bought Deals.
Amended on 29 September 201129 September 2011 and 7 February 20207 February 2020.
816
Amended on 1 January 20111 January 2011.
817
An issuer may make a rights issue with or without underwriting. Generally, it is for the issuer to decide whether its rights issue is to be underwritten.
818
In the case of a rights issue that is underwritten, any force majeure clause in the underwriting agreement cannot be invoked after the commencement of ex-rights trading.
819
820
The following requirements apply to a rights issue that is not underwritten:
821
No record date must be fixed until the Exchange has issued a listing and quotation notice in respect of the rights issue.
Amended on 7 February 20207 February 2020.
822
An issuer must issue the following to persons entitled within 3 market days (within 5 market days in the case of a scrip counter), or such longer period as the Exchange may approve, after a record date:
Amended on 29 September 201129 September 2011 and 7 February 20207 February 2020.
823
Refer to Practice Note 8A — Rights Issue Timetable.
Amended on 7 February 20207 February 2020.
824
Every issue of company warrants or other convertible securities not covered under a general mandate must be specifically approved by shareholders in general meeting.
825
In procuring the approval of shareholders in a general meeting, the circular to the shareholders must include the recommendation(s) of the board of directors of the issuer on such an issue of company warrants or convertible securities and the basis for such recommendation(s).
Amended on 29 September 201129 September 2011.
826
When listing company warrants or other convertible securities, the issuer should ensure a sufficient spread of holdings to provide for an orderly market in the securities. As a guide, the Exchange expects at least 100 warrantholders for a class of company warrants.
827
Company warrants or other convertible securities may be listed only if the underlying securities are (or will become at the same time) one of the following:
828
Each company warrant must:
Amended on 31 March 201731 March 2017.
829
The terms of the issue must provide for:
Amended on 7 February 20207 February 2020.
830
An issuer must announce any adjustment or amendment made to the terms of the issue. In the case of an adjustment, the announcement must state the specific formula, whether the adjustment has been reviewed to be in accordance with the formula, the identity of the reviewer and its relationship to the issuer.
Amended on 7 February 20207 February 2020.
831
Amended on 7 February 20207 February 2020.
832
A circular or notice to be sent to shareholders in connection with a general meeting to approve the issue of company warrants or other convertible securities must include at least the following information:
833
The following additional requirements apply to an offer of company warrants or other convertible securities by way of a rights issue or bought deal:
834
For the purpose of this Part, a "bought deal" is an issue of company warrants or other convertible securities to a financial institution which will in turn offer them to the issuer's shareholders on a pro-rata basis, usually in conjunction with a loan facility provided by that financial institution to the issuer.
Part VII Bonus Issues and Subdivision and Consolidation of Shares
Amended on 7 February 20207 February 2020.
836
An issuer that intends to make a bonus issue must promptly make an announcement, stating the following:
Amended on 7 February 20207 February 2020.
836A
An issuer that intends to undertake a subdivision or consolidation of shares must:
Added on 7 February 20207 February 2020.
837
No record date must be fixed until the Exchange has issued a listing and quotation notice in respect of the bonus issue or subdivision or consolidation of shares.
Amended on 7 February 20207 February 2020.
838
The daily weighted average price of an issuer's quoted securities, adjusted for the bonus issue or subdivision of shares ("adjusted price"), must not be less than $0.20, taking into account the issuer's adjusted price for the month preceding the application date.
Amended on 7 February 20207 February 2020.
839
An issuer making a bonus issue or subdivision of shares must state in the shareholder circular (if required) whether it expects to maintain the quantum of dividend declared and paid in the previous year.
Amended on 7 February 20207 February 2020.
840
An issuer must not capitalise:
842
843
Participation in a scheme must be restricted to directors and employees of the issuer and its subsidiaries, except that:
844
A limit on the size of each scheme, the maximum entitlement for each class or category of participant (where applicable), and the maximum entitlement for any one participant (where applicable) must be stated.
845
The amount, if any, payable on application or acceptance, the period in or after which payments or calls, or loans to provide the same, may be paid or called must be set out.
846
The exercise price of options to be granted must be set out. Options granted at a discount may be exercisable after 2 years from the date of grant. Other options may be exercisable after one year from the date of grant.
847
The voting, dividend, transfer and other rights attached to the securities, including those arising from a liquidation of the issuer must be stated.
848
The scheme must be administered by a committee of directors of the issuer. However, where the issuer has a parent company, the parent company may nominate one person to the committee. A participant who is a member of the committee must not be involved in its deliberations in respect of options to be granted to that participant.
849
Amended on 7 February 20207 February 2020.
851
Name of participant | Options granted during financial year under review (including terms) | Aggregate options granted since commencement of scheme to end of financial year under review | Aggregate options exercised since commencement of scheme to end of financial year under review | Aggregate options outstanding as at end of financial year under review |
852
Participation in a scheme by controlling shareholders and their associates must be approved by independent shareholders of the issuer. A separate resolution must be passed for each person and to approve the actual number and terms of options to be granted to that participant.
853
Any grant of options to a director or employee of the issuer's parent company and its subsidiaries that, together with options already granted to the person under the scheme, represents 5% or more of the total number of options available to such directors and employees, must be approved by independent shareholders. A separate resolution must be passed for each such person and to approve the aggregate number of options to be made available for grant to all directors and employees of the parent company and its subsidiaries.
854
When seeking shareholder approval, an issuer must explain the basis for the following in the circular:
855
An issuer must briefly describe in the circular the potential cost to it arising from the grant of options.
856
857
Where directors of the issuer are trustees of the scheme or have an interest direct or indirect in the scheme, the circular must disclose that interest.
858
Shareholders who are eligible to participate in the scheme must abstain from voting on any resolution relating to the scheme (other than a resolution relating to the participation of, or grant of options to, directors and employees of the issuer's parent company and its subsidiaries).
859
The following categories of persons must abstain from voting on any resolution relating to the participation of, or grant of options to, directors and employees of the parent company and its subsidiaries:
860
If options have been granted under a previous scheme, the circular to shareholders seeking approval for the new scheme must disclose the following about the previous scheme:
861
Any scheme which enables shareholders to elect to receive shares in lieu of the cash amount of any dividend must comply with the following:
Amended on 1 January 20111 January 2011 and 7 February 20207 February 2020.
862
An issuer must announce whether or not a scheme is to apply to a particular dividend. Such an announcement must be made promptly after the decision is taken and in any event, no later than the market day following the record date for that particular dividend.
Amended on 7 February 20207 February 2020.
863
The Exchange will normally admit the securities to Catalist on receipt of conforming documents from the sponsor. However, the Exchange may, in its absolute discretion, impose conditions on the listing of the securities, or delay or refuse the listing. Such conditions may include shareholder approval and/or abstention from voting by certain shareholders. The Exchange also reserves the right to vary any such condition(s) or impose additional conditions.
864
The following sets out the usual steps in the additional listing process (other than for rights issues):
Refer to Appendix 8B — Confirmation for Corporate Actions / Additional Listing.
Amended on 31 January 200831 January 2008 and 7 February 20207 February 2020.
865
An offer information statement lodged under section 277(1)(b) of the SFA with the Exchange acting as agent of the Authority, must meet the following requirements:
Refer to Practice Note 4B — General Requirements for Lodgement or Submission of Documents.
Amended on 31 January 200831 January 2008 and 7 February 20207 February 2020.
866
An issuer may purchase its own shares ("share buy-back") if it has obtained the prior specific approval of shareholders in general meeting.
867
A share buy-back may only be made by way of:
Unless a lower limit is prescribed under the issuer's law of incorporation, such share buy-back shall not exceed 10 per cent of the total number of issued shares excluding treasury shares and subsidiary holdings as at the date of the resolution passed by shareholders for the share buy-back.
Amended on 1 October 20131 October 2013, 31 March 201731 March 2017.
868
For the purpose of obtaining shareholder approval, the issuer must provide at least the following information to shareholders:
869
An issuer may only purchase shares by way of a market acquisition at a price which is not more than 5% above the average closing market price. For this purpose, the average closing market price is:
Amended on 7 February 20207 February 2020.
870
An issuer making an off-market acquisition in accordance with an equal access scheme must issue an offer document to all shareholders containing at least the following information:
Amended on 29 September 201129 September 2011.