Investor Information

Investors who invest in securities admitted to Prospects will:

  • have access to all relevant issue information available through the Prospects website – both before and after the issue of the equity and bond to the public
  • enjoy the benefits of participating in small business growth
  • have available a venue where the SME shares and/or bonds may be traded, creating an exit route for investors
  • be ensured transparency and continued good corporate governance through the role of the Corporate Advisor who will continue to play a fundamental role for such time that the instruments remain admitted to Prospects

Investors may invest in a company admitted to Prospects at the IPO stage, when the company issues the instruments for sale, or through the secondary market.

Access to the secondary market trading will be through the network of Members approved by the Exchange.

Whilst SMEs generally enjoy very strong growth potential, and levels of profitability, the risks of investing in the SME market should not be ignored. As SMEs are, by their very nature, more susceptible to adverse market conditions, this particular market involves a different level of risk to the potentially better capitalised, larger organisations listed under the Prospectus Directive.

Investors are, therefore, encouraged to take the necessary advice in order to build a well-balanced and appropriate investment portfolio, reflecting their own personal circumstances and investment objectives.

It is important that investors seeking to invest in companies admitted to Prospects seek the necessary advice and carry out adequate research into the respective company to understand, and assess, the risks that may be associated with the investment. While SMEs form the backbone of most economies, and could generate attractive returns, they are also relatively less able to cope with severe downturns in an economic cycle.

While the ongoing corporate advisory role is intended to mitigate such risks, by assuring transparency, viability and good corporate governance, the investor must always be aware of the relatively higher risk associated with this market.

           Prospects Rules