⚖️ Press release

About this category

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.

Note: Working on a legal issue? Try our AI Legal Assistant - It's free while in beta 🚀

Use our legal assistant

⚖️ Press release


Rights Issue Press Release

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.
Contract template sketch
An outline stencil of a pencil to represent the number of uses this contract template has had.
Share icon, to represent the number of times this template has been shared by Genie AI users

Associated business activities

Announce rights issue

There are many reasons why a company might want to announce a rights issue, such as when using a press release. One reason might be to increase the company's capital so that it can expand its business operations. Another reason might be to raise funds to pay off debts or to finance a major project. Finally, a rights issue can also be used as a way to signal to the market that the company is financially strong and capable of weathering tough times.