Social Impact Shares Launch
Tuesday, 24th June 2014 at 10:42 am
A prospectus seeking support to open up new finance pipelines for social impact projects has been lodged with the Australian Securities and Investment Commission (ASIC).
Lodged by public company and consortium of Not for Profits, Community 21 Limited, the share offer aims to raise capital for investment for Australia’s Not for Profit sector.
“This marks an exciting coming of age for an organisation that has over a decade of innovation under its belt," Community 21 Executive Director Peter Quarmby said.
He said the share offer was seeking to raise up to $4 million for a number of key initiatives including a crowdfunding project supporting social outcomes and the development of impact investing vehicles, such as a social impact fund, which would allow for equity investment in social impact projects.
“Twelve years ago, 20 diverse Not for Profits contributed $20,000 each to buy the first shares to create Community 21 Limited, setting up a company dedicated to helping Not for Profits take control of their financial destinies," Quarmby said.
“From our research, as a share offer from a consortium made up of Not for Profit shareholders, this seems to be the first of its kind in Australia.”
He said the capital raised would be co-invested with long-term partner, Bendigo Bank, in an expansion of their joint venture company, the Not for Profit banking specialist, Community Sector Banking.
The Prospectus said the offer price per share was $5.00 with 400,000 shares on issue immediately with up to 800,000 new shares being offered.
A Federal Government report released in April 2013 suggested that the Impact Investment market in Australia is still in its early stages but shows great potential for growth.
The report Impact Australia – investment for social and economic benefit is written by Social Innovation Strategist Rosemary Addis from the Department of Education, Employment and Workplace Relations along with John McLeod and Alan Raine.
The report said the distinguishing feature of impact investing was the intention to achieve both a positive social, cultural and/or environmental benefit and some measure of financial return.