Capturing opportunities while helping kiwi companies raise capital
Covid-19 has changed the way that Kiwi’s live, work and play. For some of us, this means working from home (and putting up with homemade coffee), while for others, it’s a lot more serious – jobs have been lost and decisions now have to be made on how to continue supporting themselves and their families and secure new work.
These changes also affect businesses in different ways. While a healthcare company might be facing surging levels of demand for their products, most companies are feeling the negative effects of Covid-19 as they are unable to sell their goods and services as they used to. And just like a household facing a dropin income while still having to pay rent or a mortgage, a company facing a drop in income while still having to pay wages, rent and business costs is also likely to be feeling the pinch.
How will businesses recover?
For companies listed on the stock exchange, a capital raise is one way to get through this period. A capital raise involves issuing new shares and selling them to investors to raise cash. There are a few different reasons that a company may want to do this. During good times a company may want to use a capital raise to fund a new project or planned growth in their business. However, in times like this, many companies may use the capital raise to help temporarily cover their day-to-day operating expenses until their revenue streams are able to pick up again.
Early withdrawal for Australian Super
If you currently have some funds with an Australian Superannuation provider or the Australian Tax Office (ATO), you may be eligible to make an early withdrawal.
Eligible Australian and NZ citizens and permanent resident are able to apply to access up to:
- $10,000 prior to 30th June 2020
- A further $10,000 from 1 July until 24 September 2020
Get in touch with your KiwiSaver Adviser for further information or check the ATO website to check if you qualify.
KiwiSaver Webinar Series
Our first KiwiSaver Webinar will be live Thursday 20th April at 7:00pm, hosted by our Head of KiwiSaver Claudia Twine. This will be a great opportunity to come along, learn about market influences, and pick up some tips and trick to get the most out of your KiwiSaver!
Register here: https://bit.ly/36cEnV4