-Private Trading Exchanges-
Private Trading Exchange Licenses are for Companies and/or their Advisors.
Private Trading Exchanges are ideal for SMEs looking to raise capital through the issue of Debt or Equity securities.
What is a Private Trading Exchange?
Entrepreneurs & Early-stage Business
Development or Expansion Capital
In most regions around the world, including Australia, it is illegal for any person (or company) to ask two or more persons to invest in a shared business venture, property or other investment, without complying with legal rules set down by the relevant Corporate Regulator.
Austpac Ventures has developed a unique and legally compliant Internet-based private securities trading exchange platform known as a Private Trading Exchange, or PTX.
A PTX may be licensed to a company that has issued, or proposes to issue, securities by undertaking an Initial Private Offer (IPO) in order to raise funds from investors.
A PTX licence may also be granted to an accountant, solicitor, or other advisor that acts on behalf of multiple companies that have issued, or propose to issue, securities in order to raise funds from investors.
With their own Private Trading Exchange, SMEs can undertake an ‘Initial Private Offer’ to raise debt free, interest free, unsecured funds to grow, even if the business is small or very early stage.
Types of Securities that can be listed on a Private Trading Exchange
Equity securities refer to the shares issued by companies to investors. When undertaking a small-scale offer to raise capital SMEs generally issue Ordinary Shares.
There can be other classes of shares that have different voting rights attaching to them such as entitlement to vote or participate in dividend distribution.
However, Ordinary Shares, in the eyes of the investor, are more fair and democratic in that one share always equals one vote, plus one share of any dividend.
Debt securities are issued securities that have a right to participate in interest payments on a regular basis. Known as coupon payments, the interest payments typically can be paid either six-monthly or on an annual basis. Sometimes interest payments are paid more often depending on the terms of the debt issue.
Types of Debt securities SMEs might issue are; Loan Notes, SME Bonds, Convertible Bonds, Convertible Notes and Realty Bonds.
It is important to note that Debt securities have no voting rights.
Issuing a Convertible SME Bond can be a way to fund your initial capital raising costs and get your equity capital raise off the ground.
Offering Convertible SME Bonds is a way to get your early supporters onboard while giving them the discretion to choose to convert the debt to equity as the business grows, perhaps at a discounted price to your Company’s proposed initial private offer share price.
The advantage of issuing convertible bonds is that, if the bonds are converted into shares, the company’s debt vanishes.
Initial ‘Private’ Offers
An Initial Private Offer (IPO) is an affordable way for a startup or early-stage company to raise capital through an issue of debt or equity securities.
To support your fund raising, you can list your Company’s IPO on your own Private Trading Exchange (PTX). And once your offer has closed, the Company’s shareholders are then able to trade their shares on the PTX.
You can offer the following types of securities on a PTX:
- Equity Securities
- Debt Securities
- Hybrid Securities
A Bid Currency
Over the past twenty five years, our trading exchanges have facilitated over $150,000,000 in transaction volume.
If you have a successful business, but have been battered by the Covid lockdowns, selling an equity stake can provide much needed operating capital as well as extra help to fund the business post Covid.
Or perhaps you wish to acquire or merge with a specifically identified business, or alternatively grow through a strategic acquisition? A PTX allows you to use your Company’s shares as a bid currency for mergers, acquisitions & takeovers.
Strategic Business Exits
A sale of owner’s shares can provide a way for the business owner/s to cash out. This can be a good succession plan for older owners wanting to transition into retirement.
Potential investors could be management, staff, employees, clients or suppliers wishing to firm-up their relationship by buying an equity stake in the business, or even outside investors such as migrants seeking an Australian resident visa.
Retain & incentivise your key employees through employee share ownership participation (ESOPS). If it’s important to you, as a business owner, to be able to give back to your employees…to give people a chance to realise something for the value they have created, then setting up an ESOP might be a wise move.
Licensees have access to precedent forms, investment offer document templates, etc. Everything you need to start raising funds for your, or your Client’s, company.
Purchase a Private Trading Exchange (PTX) for your Company’s issued securities.
Our private trading exchanges can be designed for the Trading of Debt securities, Equity securities or Hybrid securities.