Malaysia: COVID-19 - Alternative Fundraising via Issuance Of Conventional Convertible Notes by Businesses to Venture Capital and Private Equity Firms

In brief

On 28 April 2020, in a move to provide alternative accessible funding to start- ups, micro, small and medium-sized enterprises and small and mid-cap companies which have been facing liquidity issues since the Malaysian Movement Control Order (MCO) took effect (the MCO has been in effect since 18 March 2020 and has been recently extended to 12 May 2020), the Securities Commission Malaysia (“SC”) has revised its Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (issued on 9 March 2015 and revised on 28 April 2020) (“LOLA Guidelines”) and the Lodgement Kit: Unlisted Capital Market Products under the Lodge and Launch Framework (issued on 9 March 2015 and revised on 28 April 2020) (“Lodgement Kit”) to permit businesses to issue conventional convertible notes to venture capital firms (“VC”) and private equity firms (“PE”) registered with the SC1 (“CN Lodgement Regime”). Currently only conventional convertible notes may be issued under the CN Lodgement Regime


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This client alert was issued by Wong & Partners, a member firm of Baker McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner or equivalent in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information
Mark Lim
Kuala Lumpur
Munir Abdul Aziz
Deputy Managing Partner
Kuala Lumpur

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