On 8 April, in response to the COVID-19 crisis, the FCA announced a series of temporary measures aimed at helping listed companies to access capital through equity fundraisings.
Whilst these measures, which are explained in detail in their Statement of Policy, do not go as far as was hoped by some, they provide some additional flexibility to companies who have or develop a need to raise additional funding to shore up their balance sheet as a consequence of the COVID-19 crisis and also clarify the FCA's position on working capital statements.
We consider the detail of the changes below, but in short they cover:
- The ability to include COVID-19 crisis related qualifiers in working capital statements.
- Alternatives to general meeting approval for class 1 and related party transactions.
- Support for increased approval being sought to disapply pre-emption rights.
- The use of a simplified prospectus for secondary issuances.