To be a listed company means that there are certain information rules to follow. These rules are so that the market can interpret the company the right way.
At Spotlight we are helping our companies to follow the existing rules. The companies listed at Spotlight can always contact our surveillance team, they are specialists on the regulations. The companies can ask questions about information that is needs to be communicated to the market, what is ethical on the stock market, principals and policies. Spotlight is always updated on the rules and can interpret changes in them. We are continuously sending out information about what these changes means for our listed companies.
Spotlight has reviewed the listing agreement and replaced the agreement with a regulation and an undertaking to follow the prevailing rules. The rules are mainly the same as before but we have improved the framework and with a clear division in Listing Requirements, Insider Information and Other Mandatory Disclosure of Information. Below you can find both the regulation applicable until September 22nd 2019 and the new regulations, applicable from September 23nd 2019.
The regulation has gotten a new framework to make it easier to find and understand the rules for listed companies. We hope that it will be easier to apply the already existing rules by gathering all stipulations regarding a specific subject in one chapter.The regulation consists of the following chapters:
The rules for listed companies are extensive and Spotlight's ambition is to be clear, predictable and give the companies guidance on how the rules should be interpreted. We believe that this will lead to higher regulatory compliance, which in turn will result in increased trust and interest from investors.
Most of the provisions have been given a text to give an easy-to-understand guide on how the rules should be applied and interpreted. The guidance text is not binding, but consists of Spotlight's interpretations of the practice that applies, we hope that with it we can meet the requirements for a clear and clear regulatory framework.
The companies at Spotlight have previously signed a listing agreement, but with the new regulations, it is replaced by a commitment to Spotlight to follow the prevailing rules. For companies that apply for listing, the regulations apply from the date on which the company signed the undertaking to comply with the regulations. For those of you who are already listed, the regulations apply from April 1st, 2019.
Agreements saying that capital, in some cases on an ongoing basis, is contributed by issuing shares or other financial instruments to the lender usually leads to increased dilution with an increased number of shares, which can have a significant impact both for the company, shareholders and the market. In order to avoid misunderstandings in the marke it is important that the information published by the company in connection with a financing agreement being signed, in future targeted issues and conversions, is complete. Spotlight has clarified what the companies should publish on financing agreement in order to facilitate understanding of the importance of the agreements and the information that should be published. Spotlight will follow the development and update our guidance if needed.