Success: Prospectus-free rights capital increases of up to 8 million euros possible
Large success for KMU interest federation / BMF presents draft bill for the change of the folder right.
The merger of the capital market-oriented SME sector is paying off. In September, the Capital Market SME Interest Group submitted a petition to amend the prospectus law to the Federal Ministry of Finance (BMF). 100 capital market-oriented companies supported the petition. The BMF has now reacted at short notice to the criticism from SMEs and presented a draft bill for a new law. Main content: Prospectus-free rights issues of up to EUR 8 million will be possible.
The Act on the Exercise of Options under the EU Prospectus Regulation and on the Adaptation of Other Financial Market Laws, which came into force on July 21, 2018 and, among other things, provides for prospectus-free public offerings of up to EUR 8 million, prevented prospectus-free rights capital increases by regulating individual investment thresholds for non-qualified investors. The individual investment thresholds were not aligned with the subscription rights of existing shareholders in the event of capital increases under the German Stock Corporation Act (AktG). The now presented draft bill of a law on the further implementation of the EU Prospectus Regulation and on the amendment of financial market laws of November 12, 2018 provides that the individual investment thresholds do not apply to securities offered to existing shareholders in the context of a rights issue.
“It is a great success for our still young association that we succeeded in changing the law and uniting the interests of the capital market-oriented SMEs. There has never been such a petition and an association of capital market-oriented SMEs in this form before. The success proves us right in our efforts,” says Ingo Wegerich (photo), President of the Association and Partner at Luther Rechtsanwaltsgesellschaft.
About the Interessenverband kapitalmarktorientierter kleiner und Mitteler Unternehmen e.V.
Founded on August 30, 2017 and headquartered in Frankfurt am Main, the association is particularly committed to improving the relevant framework conditions for small and medium-sized enterprises in capital market financing and actively advocates the interests of capital market-oriented SMEs in dialog with policymakers, legislative bodies, supervisory authorities, capital market institutions, interest groups and the general public. Members are SMEs, service providers, financial institutions and the media. The Management Board includes Ingo Wegerich (Luther Rechtsanwaltsgesellschaft), Alexander Starke, Nils Manegold (max 21 AG), Alexander Deuss (mwb fairtrade) and Thomas Stewens (BankM).