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November 3, 2021

When and why we suspend trading

Understanding why trading is sometimes suspended for companies on Funderbeam.

Suspending of trading is a very common and normal practise on exchanges across the world. 

Funderbeam is a marketplace for private companies and the suspension is put in place, to ensure all investors have access to the same information. The same logic applies as with any other regulated exchange. This protection is enabled during significant changes or announcements by companies such as a new funding round or an Annual General Meeting (AGM).

When is Trading Suspended?

Trading is suspended before price impacting announcements, AGM or ad hoc shareholder meetings which may or may not come with any prior warning. Trading may be suspended because of events impacting companies from outside, like governmental or regulatory decisions etc. Prior to any official announcement,  Funderbeam will suspend trading of the company in question and update the platform with the expected trading recommencement date and time.

Suspended trading during a new funding round

During a funding round, trading may be suspended and recommence multiple times as these processes can sometimes take many months. Funderbeam has a 24-hour suspension policy to ensure all investors have the opportunity to read through the new information prior to trading being opened once again. 

These newer suspension rules have followed an increase in second round fundraisings on the platform, which has resulted in a thorough review of all our trading policies.

Below we have attached a more detailed overview of when trading would be suspended during the funding period.

Trading suspension.pdf

If there are any questions around trading suspension, please feel welcome to contact the Client Relations team.

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You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment or transaction, including making a purchase of securities via the Marketplace. Funderbeam has taken steps to ensure that company and securities offering information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. Any investment opportunity on this website should not be considered as an offer to the public and is not directed at or offered to anyone to whom it may not be so directed or offered, or located in a jurisdiction where it is unlawful to do so.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam Group. In this page, we generally refer to the group as “Funderbeam”, “we”, “us” or “our”.

It is important to note that funds are raised, investments are made and trade orders are placed through three service provider entities: Funderbeam Markets AS (FBAS) (authorised and regulated by the Estonian Financial Supervision Authority under permit 4.1-1/212), Funderbeam Markets Limited (FML (authorised and regulated by the UK Financial Conduct Authority under FRN 794918), and (for trade orders only) Funderbeam Markets Pte. Ltd., (FB Pte). FBAS and FML are MIFID investment firms.

A Funderbeam client (whether investor or company) is a client of the service provider and under the protection of the requirements of the regulator under which that service provider operates: An EEA client’s service provider is FBAS, a UK/ non-EEA/ non-Singapore client’s service provider is FML, and a Singapore client’s service provider is FB Pte.

The Marketplace is operated as an organised market by Funderbeam Markets Pte. Ltd., in Singapore as a Recognised Market Operator (RMO) under the supervision of the Monetary Authority of Singapore. FBAS and FML are Trading Members of the RMO’s Marketplace. Access to the Marketplace for EEA and non-EEA clients is only provided by and through such clients’ service provider (ie FBAS or FML). The Marketplace does not provide services directly to investors outside Singapore.

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