ASX extends capital raising support until November

The Australian Securities Exchange (ASX)  has extended the deadline for its temporary emergency capital raising measures by four months to 30 November, 2020.  

The measures were introduced on 31 March, 2020 to help listed entities urgently raise capital if they had been negatively affected by COVID-19. So far, 60 firms have taken advantage of the capital raising option. However, the ASX said 12 had been denied the support as their proposals “did not conform to the spirit and intent” of the measures.  

Due to end on 31 July, 2020, the ASX had now extended this measure until 30 November, 2020. The ASX said the decision was taken “in light of the high and increasing levels of COVID-19 infections” and following consultation with the Australian Securities and Investments Commission (ASIC). 

“The decision was made in light of the high and increasing levels of COVID-19 infections in major overseas markets, recent events in Victoria, and the present uncertainty about the nature and level of government economic stimulus in Australia after September 2020.  

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“The new date takes account of ASIC’s extension of the deadline for listed companies to lodge their audited accounts for the year ended 30 June, 2020 until 31 October, 2020. It gives companies a further month to complete a capital raising, if they decide they need one, after publishing their audited accounts by the revised deadline.”