ASX compliance update

In brief - in response to the COVID-19 pandemic, the ASX has advised that it is proposing a temporary emergency class order waiver under listing rule 18.1 (Class Waiver) to help facilitate capital raisings up to 31 July 2020

It is proposed that the Class Waiver will:

• permit an entity to request two consecutive trading halts, allowing it a total of up to 4 trading days in halt to consider, plan for and execute a capital raising. If it is not able to complete its capital raising within those 4 trading days, the entity may need to request a voluntary suspension to afford it the time to complete the raise;
• increase the 15% placement capacity under Listing Rule 7.1 to a one-off placement of 25%, provided it is followed by a pro rata entitlement offer under exceptions 1, 2 and/ or 3 of Listing Rule 7.2 or an offer to retail investors under an SPP (in both cases, at the same or a lower price than the placement price); and