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


Contents

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Contact Information
Mark Lim
Partner
Kuala Lumpur
mark.lim@WongPartners.com
Munir Abdul Aziz
Deputy Managing Partner
Kuala Lumpur
munir.abdulaziz@wongpartners.com

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