How can I find out why a Company wants to raise more money?
The details of the Fundraising will be contained in what is called the 'Offer Document' or 'Prospectus'. If you wish to know the exact reasons, contact us and we will send you a link to this document, or a copy of the document, if available. However, you can normally use the following as a guide:
Fundraising is usually for one of two reasons:
> First, that the Company needs to fund expansion in one form or another e.g. to develop a new product, move into a new market or pay for a takeover. Here, it is up to individual shareholders to determine how attractive the company's plans are in order to determine whether to make a further investment.
>The second reason is to raise additional capital to fund the Company's current operations.
It cannot be assumed that all expansion plans are good, or indeed that a business is bad because it needs additional funding at some stage.