Will all companies be tradable?
Fundraising or Listed companies can choose to be admitted to trade and may consider delisting should it be appropriate. The below offers a few examples of regularly asked questions to assist with company consideration.
Do companies have to be admitted to the Singapore marketplace, in order for their securities to be traded on Funderbeam?
Yes. Funderbeam now enables trading in company securities via its Marketplace, as operated and regulated in Singapore, by our Singapore entity.
It is possible that a company raises funds with us and is on our Platform, but decides that they do not wish to be admitted to the Marketplace, and so they do not enable trading in their securities. This does not affect an investor’s holding in that company via Funderbeam, and the company must still comply with its existing obligations as set out in its investment agreements to provide regular updates to investors via our Platform. However, the company’s securities are not admitted and cannot be traded via Funderbeam’s Marketplace.
Might a company be de-listed from the Funderbeam platform or the Funderbeam marketplace in the future?
There may be a situation in which a company is to leave our Platform entirely, meaning that for example, the nominee shareholding arrangements we put in place will need to be unwound for all shareholders. This will take place only if an exit event (as defined in the investment agreements) occurs, in the unfortunate event of a company being insolvent, or where all investors agree to the nominee arrangements being terminated. If the decision for a company to exit the Platform is made, Marketplace trading for that company would also no longer be possible.
Also, companies on the Marketplace may decide in the future that they no longer wish to have trading enabled, although they may not want to fully delist. In that case, the company will stay on our Platform, investors retain their holdings via Funderbeam in the same way, and the obligations to report remain, but trading will no longer happen. Our procedure requires that a significant majority of the company’s investors consent to that decision, in order to balance the company’s objectives and goals with the rights of its investors.
If you have any questions around the topic please do reach out to the team for us to go into more detail.