Crossland Prospectus
1) Whenever company decides to sell securities to the public they are required to compile a prospectus. It can be defined as “document issued by a company setting out the terms of its equity issue” (http://www.asx.com.au/professionals/listing/steps/prospectus.htm). The prospectus contains company financial information such as “financial history, details of the existing business, proposed financing, and plans for the future.” (Ross, Westerfield, Jordan, 2007) All this information is intended for potential investors so they’re informed and can decide as to whether or not they want to invest in the company.
2) In Australia a company’s prospectus must lodged with both the Australian Securities Exchange (ASX) and the Australian Securities and Investments Commission (ASIC).In the US the prospectus must lodged with the Securities and Exchange Commission (SEC).
3) In order to subscribe to this issue of shares one must fill out the application form which is situated at the end of the prospectus. The firsts part of the application form involves filling out general details (ie, name, address, credit card details) while the second part relates to the actual purchase of the shares (ie, purchase amount etc).
4) Crossland Uranium Mining Limited are hoping to raise 5.67 million. This will be done through their initial public offering (IPO) in which they are planning to sell 22,680,000 shares at the price of 25 cents each.
5) An underwriter is usually the “highest bidding” (Ross, Westerfield, Jordan, 2007), financial institution that the company, wishing to raise capital through an IPO, offers it’s securities. Their job is to manage the IPO process, including the prospectus. This can involve assessing the company’s financial history and information and then based the company’s financial status develops a method in which to issue the shares to prospective investors. The underwriter will also accordingly price the shares and sell...
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