CAPITAL MARKETS

Companies require capital in order to function and, more so, to grow. It is therefore vital that they have access to
the financial markets, which essentially work to channel surplus funds from investors to business enterprises that
then commit these funds toward productive use.

Prospective issuers wishing to gain access to the Malta Stock Exchange (MSE) Official List, or the Main Market,
must submit an application for admissibility to listing to the Listing Authority. The MSE is, indeed, where Malta’s
larger enterprises opt to list their equity or debt securities. Since 2016, however, small-to-medium sized
enterprises (SMEs) have been presented with the option of listing their securities on the Prospects market, a
platform aimed at assisting SMEs with their alternative financing. Prospects caters for security issues that are
less than €5 million in value, and contemplates a more simplified application procedure.
City Legal’s lawyers have had extensive experience in the capital markets segment, having over the years
assisted clients with both equity and debt issues.

Main Market Listing
City Legal is available to assist with:
– the formulation of the prospectus and the application for securities to be granted admissibility to listing;
– together with the sponsor, the submission of the prospectus and listing application to the Listing
Authority; and
– advice on continued compliance with the Listing Rules.

Prospects Listing
While City Legal has chosen not to be registered as a Corporate Advisor in terms of the existing Prospects
Rules, we may act as legal advisors to, and work in tandem with, your selected Corporate Advisor. We may
assist with:
– your engagement of the Corporate Advisor;
– together with your Corporate Advisor, advising on the preparation of the Company Admission
Document; and
– advice on continued compliance with the Prospects Rules.

City Legal may also assist with any required corporate structuring or restructuring as well as corporate
governance preparations in advance of listing.

Private Placements
Public issues may not always be the desired route. An entity can instead opt to ‘privately place’ its securities with
stockbrokers, who will in turn undertake to subscribe to said securities for their own account or on the account of
underlying investors. City Legal may assist with the drafting of the term sheets that will govern the placement, as
well as the placement subscription agreement/s or forms.