Prospects MTF is a Multilateral Trading Facility operated by the Malta Stock Exchange which provides an opportunity to Small and Medium Sized Enterprises an alternative to raise finances from investors which can act as an alternative to bank finance.
Prospects MTF is a fully MIFID compliant trading platform, however it allows the issuer an option to issue securities under less stringent requirements of the prospectus regulation and the listing rules when the issue is very small, yet still ensuring proper investor protection. Prospects MTF can be utilized to issue both debt securities and also equity securities.
For a company to be eligible to apply to listing on Prospects MTF a number of requirements need to be satisfied:
- Offer of securities must be to less than 150 persons, which does not include institutional investors;
- The issue must be limited to up to €8,000,000 to benefit from the simplified admission document rather than the full prospectus;
- The company must be a Public Limited Liability Company
- The company must qualify as an SME in terms of EU law
- The Company must appoint a Corporate Advisor to assist it in the listing
For a company to qualify as an SME, the below requirements need to be satisfied. The law requires the employee criteria and either of the turnover criteria or the balance criteria to be satisfied to be classified as a specific company.
Employee and Turnover or Total Balance Sheet
- Medium - Less than 250, greater or equal to €50m, greater or equal to €43m
- Small - Less than 50, greater or equal to €10m, greater or equal to €10m
- Micro - Less than 10, greater or equal to €2m, greater or equal to €2m