The method of raising funds on the ASX is broken. Once the...

  1. 6,130 Posts.
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    The method of raising funds on the ASX is broken.
    Once the membership fees and brokerage covered the system and brokers could make a good living.
    Not now. The system is broken and this is reflected in how the need to sell down companies with the view to low entries for future raises is now the norm. This sets up a skewed valuation system and is a disservice to the Australian bourse investment
    scenario.
    A discussion as to how this could be overcome concerned a local Company HLX ( Helix Resources )
    with a major shareholder.
    As it happens a post from a holder suggested a possible investment " no strings attached " - that is no fees or requirements, only an offer of injecting dollars to the level required by Company ASIC rules - which in this case would need share holder approval. This is not usual as often funds are hard to come by. Surley though and recognizing the risks and also potential rewards there is better ways to fund Companies in the 21st Century.
    Any ideas.

    JMO

    Cheers
 
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