ASX latest comments on class waivers and other capital raising instruments

In brief - 1 May 2020 announcement provides further clarification on how ASX determines whether to allow listed entities to rely on the class waivers announced on 31 March 2020 (Class Waivers), when to notify the ASX, and raising capital through the issue of convertible notes

Many listed entities are facing constrained cash flows causing an increased need for capital brought on by the COVID-19 pandemic. This latest announcement sheds light on pressures being faced by the ASX as it faces an accelerated number of capital raisings. It also illustrates some of the thinking behind the ASX's decision making.

It appears that the ASX is attempting to balance companies' current needs for quick and efficient capital with the interests of existing shareholders. In our experience, keeping interests of existing shareholders in mind when raising money will often lead to a better outcome.