A quick note to let you know that a good bit of news came out of HM Treasury today: from 21 July, the prospectus threshold will be raised from €5 million to €8 million. In practice this means that CrowdCube will able to run campaigns of up to €8 million on the platform, whereas they used to be capped at €5 million. This is a nice expansion opportunity for them and for the sector.
For those interested in the statutory background, here is the legislative instrument: http://www.legislation.gov.uk/uksi/2018/786/contents/made
Regulation 2(2) implements Article 3(2) by amending section 86 of the Act.
Section 86 provides for exemptions from the obligation to publish a prospectus in relation to offers from the public.
The threshold for offers to the public that are exempt from the obligation to publish a prospectus is increased to euros 8,000,000.
Regulation 2(6) implements Article 1(3) by amending Schedule 11A to the Act.
Schedule 11A provides for exemptions for securities from the scope of the prospectus regime altogether and the threshold for securities exempt from the regime has been reduced to euros 1,000,000.
You know how one thing leads to another on YouTube. One minute you’re viewing a review of lightweight camping gear and a suggestion takes you to a 20 year old zit being popped.
I was researching Goldman Sachs after the news that they are trialling a savings account with their UK staff and I came across this link: https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/
I was particularly drawn to Bubble #2 Tech Stocks and how the underwriting rules were relaxed. With the above news from MIROW that a prospectus is not needed until 8 million Euros are we seeing the next bubble on Crowdcube and crowdfunding in general?
A lot of those pitches look like melon catching to me