Publisher one

Genie AI

Jurisdiction

England and Wales

Contract party

Relevant sectors

Type of legal document

⚖️ Press release

Business activity

Announce rights issue

Why use a ⚖️ Press release?

A press release is a written or recorded communication directed at members of the news media for the purpose of announcing something claimed as having news value.

A Rights Issue Press Release under UK law is a legal template that provides a framework for issuing a public statement to shareholders, investors, and the general public regarding a rights issue undertaken by a company incorporated in the United Kingdom. A rights issue is a method employed by companies to raise capital by offering existing shareholders the opportunity to purchase additional shares at a discounted price within a specified time frame.

This legal template would outline the key information and disclosures that need to be included in the press release. It would cover essential details such as the purpose of the rights issue, the number of additional shares available for subscription, the subscription price, the ratio of shares that existing shareholders can buy, the subscription period, and any other relevant terms and conditions.

The press release would also address the reasons behind the rights issue, such as raising funds for business expansion, debt reduction, strategic investments, or funding a specific project. It would explain how the decision was made, highlighting the board of directors' considerations and regulatory requirements responsible for evaluating and approving the rights issue.

Additionally, the template would guide the user in conveying any potential risks associated with the rights issue, cautioning investors about the uncertainty of the stock market and fluctuations in share prices, as well as highlighting any risks specific to the company or industry.

Moreover, the legal template would provide guidelines on how to comply with the relevant legal and regulatory requirements imposed by UK law, ensuring that the press release is accurate, fair, and does not mislead the public or potential investors. It would include details of where interested parties can find additional documentation and how they can exercise their rights to subscribe for additional shares.

Overall, this legal template for a Rights Issue Press Release under UK law serves as a comprehensive guide to help companies communicate the necessary information effectively and transparently to stakeholders regarding their rights issue, while complying with the applicable legal framework and ensuring fair disclosure.

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