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For Investors
ATA PLUS’ ECF Platform is open to all types of investors subject to compliance with the Security Commission’s investment limits which are applicable to the following investor types:
- Sophisticated Investors : No restriction on investment amount
- Angel Investors : A maximum of RM 500,000 within a 12-month period
- Retail Investors : A maximum of RM 5,000 per issuer with a total amount of not more than RM 50,000 within a 12-month period
Investors who choose to invest in an Issuer also benefit from a cooling-off period of six (6) business days commencing on the date the investment is made, within which investors are free to cancel / withdraw their investment should they change their mind and obtain a refund of their investment.
For Issuers
Being listed on the ECF Platform is an attractive and innovative way for Issuers to raise funds as such listings will not require the Securities Commission’s approval under section 212 of the Capital Market and Services Act 2007 nor is it subject to the requirement of having to register a prospectus.
Micro-funds are also permitted by the Securities Commission under its Guidelines to participate and raise unlimited funds from sophisticated investors and angel investors through the ECF platform, provided the micro-fund also meets the criteria prescribed by the Securities Commission under its Guidelines.
Only MALAYSIAN incorporated private limited companies (excluding exempt private companies), unlisted public limited companies, limited liability partnerships, and registered micro-funds are allowed to raise funds on the ECF Platform, whereas the following entities are prohibited by the Securities Commission under its Guidelines from raising funds through the ECF Platform:
- Commercially or financially complex structures (i.e. investment fund companies or financial institutions);
- public listed companies and their subsidiaries;
- companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool);
- companies other than a micro-fund that propose to use the funds raised to provide loans or invest in other entities;companies with a paid up share capital exceeding RM 10 million; and
- any other type of entity that is specified by the Securities Commission.
An issuer is also NOT ALLOWED to be hosted or raise funds concurrently on multiple equity crowdfunding platforms.
An issuer can only utilize the ECF platform to raise a maximum amount of RM 20 million during its entire lifetime, excluding the issuer’s own capital contribution or any funding obtained through private placement exercises.
Disclosure Requirements
Issuers which intend to be listed on the ECF Platform to raise funds are required to disclose the following information / documents to ATA PLUS and the investors :
- Information that explains the key characteristics of the issuer ;
- information that explains the purpose of the listing and the targeted fundraised amount;
- information relating to the business plan of the issuer; andfinancial information relating to the issuer which include:
1) for Offerings below RM 300,000.00 : certified financial statements / information by the issuer's management, if it is required by ATA PLUS for verification purposes;
2) for Offerings between RM 300,000.00 to RM 500,000.00 :
- Audited financial statements of the issuer where applicable (e.g. where the issuer has been established for at least 12 months); and
- Where audited financial statements are unavailable (e.g. the issuer is newly established), certified financial statements / information by the issuer’s management;
3) for Offerings above RM 500,000.00 : Audited financial statements of the issuer.
