The Pre-Emption Group Updates Guidance On Cashbox Placings

Today the Pre-Emption Group (“PEG”) announced its expectations with regard to issuers complying with the Pre-Emption Group Principles in light of the unparalleled economic situation caused by the coronavirus (COVID-19) pandemic.  In order to help companies raise capital quickly in these difficult circumstances, PEG has recommended that, until 30 September 2020, investors should consider supporting non-pre-emptive issuances of up to 20% of a company’s issued share capital, where an issuer:

• fully explains the particular cirumstances surrounding the capital raise; 
• consults with a representative sample of its major shareholders; and 
• allocates the new shares with the involvement of company management on a basis that allows existing shareholders to subscribe for shares in proportion to their existing holdings.