Tonydbx schreef op 14 mei 2021 09:51:
BRON Business Quant
What is Mixed Shelf Filings?
Mixed shelf offering or Shelf offering is a provision of the Securities and Exchange Commission (SEC) that allows the issuer of equity to register a new issue, which gives the issuing corporation the right to issue the securities it in parts or stages and not all at once over a three year period without re-registering with the SEC. This helps the company as it has the freedom to change the timing of the issue including the price, to take the advantages of market conditions which may arise in future.
The Shelf offering can be used the issuer corporation to issue new securities also called as primary offerings, outstanding securities also called as secondary offerings or the company can also issue making a combination of both primary and secondary offerings as per their need to raise capital for business, during the period of three years issue, the company has to report its annual and quarterly earnings along with other disclosures with the SEC. If in the three year period the company has not issued all of their securities as per the filing and the period is near to expiry the company can extend the period by filing a replacement registration with SEC.
Benefits of Shelf Offerings
The shelf offers helps the issuer corporation to access the markets rapidly to take advantage of the market conditions with minimal administrative paperwork, it reduces the cost of the company on administrative expenses as it does not have to register again for a new issue with the SEC. The shelf offering filing gives the company the right to control the process of issue of new or secondary shares. It permits the issuer to control the share price of the offering by managing the supply of the securities in the market. The shelf registration allows the company to mention multiple issues in a single registration statement if the company has a plan to issue new long term securities in the market.