Weekly Presentation

School: University of Phoenix - Course: MANAGEMENT ACCOUNTING - Subject: Accounting

Weekly Presentation Q-2 Week-11 Presented by Jasnoor Singh

TREY ISSUE 1) What are the implications under Chapter 6D of the Corporations Act of the two fundraising options being considered? 2) If a decision is made to carry out a float and seek listing on the ASX, what type of disclosure document will be required? 3) If the offer document includes forecast consistent with Larry's view concerning the prospects of the company, are there any precautions in relation to disclosure that Larry, the board of directors and theadvisers should take? Question Larry king Started business in early 2000's involving manufacturing and direct marketing offitnessequipment.Businesswasquite successful in early stages. In 2020, Larry decided to expand his business by converting his proprietorship into public company. He wants to raise 12 million in additional funds to assist with expansion. One option is to offer shares in Larry King Ltd to a number of institutional investors. Another option is to apply for listing at ASX. 2

TREY Implications under 6d for the two options considered. Option-1 • If the company decides to place new shares with institutional investors. It will need to comply with the requirements under Chapter 6D of the Corporations Act. •This includes preparing a disclosure document and ensuring that it is lodged with ASIC at least 7 days before the shares are issued. •Larry Large Ltd need to release disclosure document that discloses information to public regarding:- •Purpose for which securities are being offered. •Further information about the viability of the company. •Any risks involved with the investment.