G3 Group' s innovative capital raising
offer, which went live today, was designed on
legal advice from Chapman Tripp.
"G3 has become a bit of a trail blazer in New Zealand,
being the first company to list on the new NXT market and now the
first listed issuer to use an equity crowdfunding format,"said
Chapman Tripp partner Roger Wallis, who led the legal team on the
"The deal structure also breaks new legal ground in that it
involves the melding together of three legal frameworks: the
Financial Markets Conduct Act ' same class' regime, the NXT
market rules and the Snowball Effect marketplace.
"G3' s offer is not technically an equity crowdfunding
offer because it does not rely on the equity crowdfunding
regulations. But it does use the Snowball Effect client database as
an efficient channel to reach a wide investor audience."
Not only is the offer mechanism innovative, so too is its
execution as it does not use the normal broker networks, Wallis
"While listed companies have simpler regulatory
requirements when offering securities due to ongoing disclosure, in
this instance the offer is too niche for most NZX brokers. Snowball
Effect was able to fill this gap by providing G3 with an
alternative means to distribute its offer.
"This raise could potentially widen the investor base for
G3 Group, as well as pave the way for other companies now listed on
the NXT – Marlborough Wine Estates Group, Oceania Natural,
and Snakk Media – to look at other options for raising funds
in the future," Wallis said.
"The scope for innovation made this an excellent offer to
work on. Chapman Tripp is pleased that G3 trusted us with this
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
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