ASSOB offers a simple and accelerated means for quality start-ups, small-to-medium sized and pre-IPO enterprises to take their company to the next level.
Is ASSOB a stock exchange?
No. Stock exchanges are able to show live buy and sell offers and are subject to high levels of compliance and regulation. ASSOB is a platform that provides the tools for companies and funders who have acknowledged the risks of investing in companies outside of regulated markets such as a stock exchange, to communicate more efficiently and manage what is needed for a successful transaction.
Can I easily sell shares I buy in ASSOB profiled companies?
Not generally. Unlike stock exchanges such as the ASX where there is significant liquidity, ASSOB is a much smaller platform where secondary sales occur relatively infrequently.
What is a "compliance listing"?
A compliance listing on the ASSOB platform is for existing established enterprises that are not seeking to raise capital, but are looking to provide the Company's existing shareholders with access to ASSOB's restricted secondary sale platform where they can offer to sell (transfer) some or all of their holding.
Users of ASSOB's Secondary Sale platform should be aware at the outset that ASSOB is not an established market for the sale or purchase of securities but merely provides a mechanism to identify potential investments or investors. To that extent, the market for ordinary shares must be considered to be illiquid and likely to remain illiquid until such time, if at all, the Company lists on a stock exchange or is taken over by a company listed on a stock exchange.
How do I sell shares I buy through offers listed on ASSOB?
Where a company has raised capital on ASSOB, the original founding shareholders must enter into a voluntary restriction agreement whereby the (nominated) founding shareholders agree that they will not transfer, sell or otherwise dispose of any more than 10% of each founder's shareholding for a period of twelve (12) months from the date on which the Company obtained any new investors onto its share register resulting from the small scale (ASSOB) offer.
For all new investors, once the company's capital raising has been declared "closed", you can list your shares for resale through the ASSOB Secondary Sales System which is located on the Profile page of each company or you can sell them privately. We strongly recommend you use the ASSOB Secondary Sales System in order to ensure that the transaction is completed in a professional manner. Our service includes the provision of all the necessary forms, the use of a non-statutory trust account and ensuring that the company concerned is properly alerted and that its company secretary or share registrar updates the share register accordingly. To list your shares for sale on the ASSOB Secondary Sales system simply contact ASSOB or the Sponsor handling the relevant company.
Can I sell shares I own in other companies through the ASSOB Platform?
Yes, but only companies that are currently profiled on the ASSOB Platform. In order to do this you will need to contact the company you hold the shares in and ask them to make contact with ASSOB. They will need to undertake an 'ASSOB Compliance Listing' and go through an approval process after which (if they are accepted to the platform) you will be able to advertise your shares in that company through the ASSOB Secondary Sales System at the bottom of each Company Profile page.
How can I check the share price of shares in ASSOB profiled companies?
ASSOB does not quote live share prices; it can only display the asking price of shares being offered by companies on the ASSOB Primary Board or shareholders on the ASSOB Secondary Sales System (at the bottom of each Company Profile page). In other words, there is no fixed price, there is only what a willing buyer is prepared to pay and a willing seller is prepared to accept. When you look at the share prices of listed companies in the paper or see them on the news, that price shown is the last price that someone paid that day for a share in the company. ASSOB works in the same way but there are fewer trades in shares in companies profiled on the ASSOB Platform.
Is buying shares in ASSOB profiled companies risky?
ASSOB does not give financial advice of any kind. We simply publish offers made by various companies. It is up to you to read the information provided by the company offering the shares, in particular the risks section of their offer document. You should also seek independent advice from an Australian Financial Services Licensee who is qualified to provide such advice. You should also do your own due diligence about the industry, market opportunity and competitors.
What kinds of returns should I be expecting from shares I buy in ASSOB profiled companies?
ASSOB does not give financial advice of any kind. We simply publish offers made by various companies. It is up to you to read the information provided by the company offering the shares, in particular any areas of their offer document relating to projections. You should also seek independent advice from an Australian Financial Services Licensee who is qualified to provide such advice. You should also do your own due diligence about the industry, market opportunity and competitors.
More information about investing in companies listed on the ASSOB Platform is available via this link - Easy Investing With ASSOB.
The Australian Securities & Investments Commission (ASIC) also provides some very useful guidance in respect to investing in unlisted companies – click here to read more.
Still Not Sure?
If you have a question about ASSOB, a complaint or a good news story about a company you have invested in, please let us know via this link - Contact Us.
All enquiries will be treated with the utmost respect for your privacy and handled within two (2) business days.