When a company conducts a cash capital increase, within 5 days from the date it confirms the number of shares for which subscription rights are waived by employees or shareholders, it shall file with the securities firm a written fundraising plan (Attachment 3) containing the basic company information, capital raising and utilization records for the past 3 years, capital utilization plan for the current cash capital increase, the fees or any other form of consideration paid to the securities firm, and other expenses in connection with the issuance. The securities firm shall conduct due diligence to verify that no material irregularities exist, after which it shall disclose the fundraising plan through the securities firm's crowdfunding platform for no less than 5 business days. Only then may investors begin to subscribe the shares.
The company shall disclose the crowdfunding progress through the securities firm's crowdfunding platform from the beginning of the equity crowdfunding until the completion of company amendment registration.
During the period of equity crowdfunding, the company may not externally state or issue any forecasted financial or business information.
The company and its board of directors, supervisors, and managerial officers shall assist in the due diligence process conducted by the securities firm and provide any needed materials.
If any of the following circumstances occurs when a company conducts equity crowdfunding, the company shall note the circumstance in a prominent typeface in the fundraising plan. Furthermore, the securities firm shall disclose the circumstance prominently when disclosing the fundraising plan on its crowdfunding platform.
The company shall be solely liable in the event there is any misrepresentation, falsehood, or concealment in any relevant information filed by the company with the securities firm under paragraph 1.
- The company is a close company as defined in Article 356-1 of the Company Act.
- The current equity crowdfunding offer is available to institutional angels only.
- The securities offered in the current equity crowdfunding are preferred stock without debt characteristics.