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Liability for Non-Disclosure in Equity Financing

Harvard Corporate Governance

Notably, the damage payment received by the outside investors is offset in part by the reduced value of their equity stake. Posted by Albert H. Choi (University of Michigan) and Kathryn E. Spier (Harvard Law School), on Friday, April 22, 2022 Editor's Note: Albert H. Choi is Paul G. Kauper Professor of Law at the University of Michigan and Kathryn E. Spier is Domenico De Sole Professor of Law at Harvard Law School. This post is based on their recent paper.

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Debt vs. Equity Financing: Which is better?

Equilest

Debt vs. Equity Financing: Which is better? According to the finance theory - there are two basic ways to finance the activity of a business - equity and foreign capital. So which of the alternatives is better - equity or foreign capital? .

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What Are M&A Sources of Capital?

Benchmark Report

First, the financing needs to be raised with consideration of the company's operating cash flows. For example, if the business uses debt financing, it should have sufficient funds to cover the interest and repay the debt.

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Orchestra BioMed™ Announces Strategic Collaboration, Closing of $110 Million Private Equity Financing and Plans to List on Nasdaq Through Merger with Health Sciences Acquisitions Corporation 2

Benzinga

Investors in $110 million Series D financing include Medtronic and Terumo as well as lead investor RTW Investments and founding investor Perceptive Advisors. Business Combination and completed private equity financing are structured to ensure total gross proceeds of a minimum of $180 million, which is expected to fund the combined company into 2026 based on current plans and estimates. The Series D financing was not contingent on the consummation of the Business Combination.

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European fintechs muscle up through flurry of mergers

Financial Times M&A

Plus, US fintech acquisitions tumble, and why Secfi chief Frederik Mijnhardt thinks equity financing reaps benefits all round

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Venture Capital: Down Round Options

John Jenkins

With valuations of many early-stage companies tumbling, some of those companies are staring at the possible need for a “down round” equity financing. Down rounds are a hard pill to swallow for founders and existing investors, and often require companies to manage anti-dilution rights and other protections for existing investors. This Bloomberg Law article discusses […

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Elon Musk Plans $6.25B More In Equity For $44B Twitter Deal

Law 360 M&A

billion in equity financing to acquire Twitter Inc., Elon Musk on Wednesday promised an additional $6.25 according to a U.S. Securities and Exchange Commission disclosure, a move that comes just a week after the Tesla Inc.

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Brightwood Capital Advisors and PhenixFIN Lead Financing to Support CCP Capital Strategies’ Acquisition of Wireless Maritime Services

Business Wire M&A

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Proactive news headlines including West Wits Mining, Calima Energy, DomaCom Australia and Race Oncology

Benzinga

Sydney, May 27, 2022 (GLOBE NEWSWIRE) -- Proactive, provider of real-time news and video interviews on growth companies listed in Australia, has covered the following companies: West Wits Mining Ltd (ASX:WWI) shares surged more than 20% higher intra-day after entering into an equity financing facility with SBC Global Investment Fund to raise up to $75 million.

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What Is Optimal Capital Structure?

Andrew Stolz

The optimal capital structure of a firm is the right combination of equity and debt financing. Debt financing may have the lowest cost, but having too much of it would increase risks to the shareholders. Cost of equity . Definition of Optimal Capital Structure.

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Weekly Roundup: April 22-28, 2022

Harvard Corporate Governance

Liability for Non-Disclosure in Equity Financing. The Corporate Calendar and the Timing of Share Repurchases and Equity Compensation. Tags: Equity-based compensation , Executive Compensation , Incentives , Long-Term value , Repurchases. Posted by the Harvard Law School Forum on Corporate Governance, on Friday, April 29, 2022 Editor's Note: This roundup contains a collection of the posts published on the Forum during the week of April 22-28, 2022.

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Modigliani-Miller Theorem - is it Any Good For Business Valuation?

Equilest

The Modigliani-Miller theorem is a fundamental principle in finance that . Their work was groundbreaking at the time and has had a lasting impact on finance. The Modigliani-Miller theorem has been widely studied and has significantly impacted finance. It is often used as a benchmark for evaluating the financial decisions of firms and has been influential in shaping how firms approach financing and capital structure. . . What is the Modigliani-Miller Theorem? -

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META Lesson 2: Accounting Inconsistencies and Consequences

Musings on Markets

Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance.

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What is Weighted Average Cost of Capital (WACC)?

Andrew Stolz

The WACC is the average cost of raising capital from all sources, including equity, common shares, preferred shares, and debt. Formula: [Cost of Equity * % of Equity] + [Cost of Debt * % of Debt *(1 – Tax Rate)] + [Cost of Preferred Stock * % of Preferred Stock].

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StoneBridge Acquisition Corporation (NASDAQ: APAC) Announces Business Combination Agreement with Southeast Asia's 'Fintech-As-A-Service' (FaaS) player – DigiAsia

Benzinga

All current shareholders including Mastercard and Reliance Capital Management (RCM) will roll over 100 percent of their equity. Yorkville Advisors Global has committed to $100 million of equity financing, including pre-paid advance of up to $30 million in three tranches. The Transaction values the combined company at a pre-money equity valuation of $500 million and is expected to close in 2Q 2023.

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SPARKS ENERGY, A LEADER IN POWER INFRASTRUCTURE SERVICES AND RESTORATION, TO LIST ON NEW YORK STOCK EXCHANGE THROUGH MERGER WITH 10X CAPITAL VENTURE ACQUISITION CORP. III

Benzinga

10X III and Sparks have secured a $50 million committed equity financing facility. A $50 million standby equity financing facility has been secured from YA II PN, LTD., Sparks Energy, Inc. Sparks"), a power infrastructure services firm and a leader in power restoration management, has entered into a merger agreement with 10X Capital Venture Acquisition Corp.

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What is the Modigliani–Miller Theorem?

Andrew Stolz

The first proposition of the M&M says that the value of leveraged firms (capital structure with a mix of debt and equity) and unleveraged firms (capital structure with only equity) are the same. Business valuation Equity Analysis Investing finance investing valuation

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Interim Guidance on Stock Buyback Excise Tax Confirms Broad Application to M&A and Capital Market Transactions

Cooley M&A

SPAC stock issued in a private investment in public equity financing or in a deSPAC transaction) would reduce the Excise Tax under the “netting rule.”

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Why Excess Cash Impedes Your Growth

Value Scout

By lowering the equity-financed portion of cash, we can lower the most expensive portion of the COC. It results in consistent destruction of capital and business risk increases, resulting in lower business value over the book assets and equity.

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Bioasis Technologies Inc. Announces Merger with Midatech Pharma plc

Benzinga

Midatech has also entered into securities purchase agreement with an institutional investor for (i) a registered direct offering of ADSs for gross proceeds of approximately US$400,000 (the " Registered Direct Offering ") that is expected to be completed on or about December 15, 2022 and (ii) a private placement equity financing for gross proceeds of approximately US$9.6M NEW HAVEN, Conn., 13, 2022 (GLOBE NEWSWIRE) -- BIOASIS TECHNOLOGIES INC. OTCQB: BIOAF , TSX.V:BTI))

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Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions.

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RPT Realty Reports Third Quarter 2022 Results; Raises Full Year 2022 Outlook

Benzinga

million of consolidated debt and finance lease obligations. million of undrawn forward equity, the net debt to annualized adjusted EBITDA ratio would be 6.0x. FINANCING ACTIVITY. Company Contact: Vin Chao, Managing Director - Finance and Investments 19 W 44th St.

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Sullivan & Cromwell Discusses the Implications for Financial Institutions of Proposed SEC Climate Disclosure Rules

Reynolds Holding

In particular, the disclosure of Scope 3 greenhouse gas emissions (which capture financed emissions) and climate scenario analysis will likely be mandatory for many financial institutions. Disclosures of financed emissions, which typically represent the most significant portion of financial institutions’ “overall” GHG emissions, present a unique challenge because the calculations or estimates of such emissions can be difficult to obtain on a reliable and timely basis.

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