Given the unprecedented effects of COVID-19, including
widespread travel restrictions, listed companies may have to
consider alternative ways to raise capital on an urgent basis,
notwithstanding the current condition of the financial markets.
The use of a Jersey cash box structure is a financing tool to
facilitate share and convertible bond issues and to allow access to
alternative sources of funding on an expedited basis. The main
advantage of the cash box structure is that shares issued by the
relevant United Kingdom public limited company
("Plc") (whether immediately, or upon
conversion of bonds) are issued for a non-cash consideration so
that the statutory pre-emption provisions set out in the UK's
Companies Act 2006 do not apply. The share issue can therefore take
place without the timing implications of seeking shareholder
approval to disapply the pre-emption rights or conducting a rights
issue.
