Summary of Service
ATA PLUS is the Recognized Market Operator of the ECF Platform registered by the Securities Commission of Malaysia pursuant to section 34 of the Capital Markets and Services Act 2007. The ECF Platform allows Private Limited Companies / Limited Liability Partnerships (“Issuers”) to raise funds via the process of equity crowdfunding on the ECF Platform by offering its shares / equity for sale and subscription to the public. Users who visit and use the ECF Platform are able to participate in this process by amongst others, creating profiles, browsing, and / or investing in Issuers who have been listed on the ECF Platform. The ECF Platform also allows its users to interact, network, learn about, and connect with each other.
The statements under the Risk Warning and Guidelines & Eligibility (as stated on the ECF Platform) are made in accordance with the Guidelines on Recognized Markets issued by the Securities Commission of Malaysia pursuant to section 377 of the CapitaI Markets and Services Act 2007 (“CMSA”). In that regard, the following classifications / terminologies apply to the Users of the ECF Platform where appropriate:
Refers to High Net-Worth individuals, i.e. individuals with a total wealth or net personal assets exceeding RM 3 million or its equivalent in foreign currencies; OR
High Net-Worth Entities (Companies / Corporations) i.e. a corporation with total net assets exceeding RM 10 million or its equivalent in foreign currencies based on its last audited accounts.
Refers to a tax resident in Malaysia whose total net personal assets exceed RM3 million or gross total annual income is not less than RM180,000 or jointly with his or her spouse, has a gross total annual income exceeding RM250,000.
Refers to investors that do not fall under the categories of either Sophisticated Investor or Angel Investor.
A user hosted on ATA PLUS equity crowdfunding platofrm ("Site") to offer its shares on the platform (referred to as 'Entrepreneur' on the platform)
ATA PLUS is a platform that permits Issuers to offer and sell shares in their Company directly or indirectly (as a “Registered Recognised Market Operator” by Security Commission Malaysia) which may be accessed at www.ata-plus.com
By accessing, using and / or relying on the ECF Platform or the Service, the User understands and agrees that :
- The ECF Platform is operated on an “as is” and “as available” basis. ATA PLUS makes no warranty or representation that the ECF Platform or Service will meet the User’s requirements, that it will be of satisfactory quality, that it will be fit for a particular purpose, that it will not infringe the rights of third parties, that it will be compatible with all systems, that it will be secure or that all information provided will be accurate.
- ATA PLUS makes no guarantee of any particular outcome from the User’s access, use and / or reliance on the ECF Platform or Service.
- No part of theECF Platform or Service shall constitute or be construed as advice on any legal, investment or financial matters and ATA PLUS is under no circumstances a party or responsible for any agreements, settlements and / or arrangements entered into between the Users as between themselves or any third parties.
- ATA PLUS does not negotiate terms for and on behalf of the Users or third parties.
- ATA PLUS does not compensate its employees, agents or other persons affiliated with ATA PLUS for any solicitation, referral or sale of shares on the ECF Platform.
- The User’s access, use and / or reliance on the ECF Platform or the Service is voluntary and made at the User’s own risk. The User shall bear full responsibility to seek the appropriate independent legal and / or financial advice and conduct their own independent due diligence on any matters arising from or in connection with the ECF Platform or Service as the User may require.
- ATA PLUS provides no warranty or guarantee that the ECF Platform is free of viruses, malicious computer code or other forms of interference that may damage the User’s computer or any other devices, or that access to the ECF Platform will be uninterrupted, timely or secure.
Eligibility To Use The Services
For the avoidance of doubt, ATA PLUS as the operator of the ECF Platform and provider of the Service retains the exclusive right to limit, restrict and / or prohibit the User’s access and / or use of the ECF Platform or Service (whether wholly or partly) at any time as it deems necessary or appropriate, and with or without prior notice to the User.
All information provided by the User to ATA PLUS in connection with a User’s account / profile in respect of the ECF Platform and the Service is required to be accurate, complete and truthful. The User shall be fully responsible for monitoring all activity in respect of its User account / profile and notifying ATA PLUS immediately if their User account / profile has been used without their authorisation, if there is any breach of security and / or if there is any false, misleading, incomplete and / or inaccurate information in respect of the same. The User also agrees to provide any additional information and / or documentation as required by ATA PLUS to verify the User’s identity and to otherwise perform ATA PLUS’ role and responsibilities as the operator of the ECF Platform and provider of the Service.
The User understands that by accessing, using and / or relying on the ECF Platform or Service, the User may encounter material or content that the User may find offensive, indecent, objectionable or explicit. Nevertheless, the User agrees that any access, use and / or reliance on the ECF Platform or Service is at the User’s own risk and discretion and that the User shall not hold ATA PLUS liable in respect of the same.
All content and material published on the Platform shall be deemed to be owned by ATA PLUS and subject to protection by Malaysian intellectual property laws and rights applicable to the ATA PLUS in respect of the same.
The User shall indemnify and hold harmless ATA PLUS and its directors, employees, affiliates, representatives and agents from all claims, losses, damages, liabilities, costs, expenses and / or harm incurred by the User or any third party arising from or in connection with the User’s access, use and / or reliance on the ECF Platform or Service. ATA PLUS reserves the right to adopt the exclusive defence and control over any matter in that regard and the User shall assist and cooperate with ATA PLUS in any defence and / or settlement in respect of the same.
The User agrees that the Service shall be deemed to be based in Malaysia and shall be governed by the laws of Malaysia.
Any communication / notification from ATA PLUS to the Users arising from or in connection with the ECF Platform or Service shall be effective upon delivery by hand, email and / or registered post or by any other means which the User has by its conduct accepted or acknowledged to be appropriate.
Any communication / notification from the User to ATA PLUS arising or in connection with the ECF Platform or the Service shall be effective upon receipt by ATA PLUS by hand, email and / or registered post at the following addresses:
- Reference : Ata Plus Sdn Bhd
- Address : Level 33, Ilham Tower, 8 Jalan Binjai50450 Kuala Lumpur, Malaysia.
- Email : [email protected]
ATA PLUS is glad to host a list of issuers, its businesses and potential investors on the ECF Platform. We are passionate about financial inclusion as well as matching lucrative businesses with investors to bring about positive social and economic outcomes. However, it is important for users to understand the characteristics and the workings of an equity crowdfunding marketplace.
The following are key characteristics that define ECF:
- Issuers using ATA PLUS' ECF Platform include start-ups, early stage and growth stage businesses. Investment in these types of businesses carries a considerable level of risk.
- As with all other investments, there is a risk that your investment may not materialize in a profit or you may lose your entire investment amount. You must be in a position to bear this risk without undue hardship.
- The law as stipulated under the Security Commission's regulation on equity crowdfunding requires people who offer financial products to give basic corporate and financial information to investors before they invest.
- However, kindly note that not all information of the Issuer is required to be disclosed or made available on the Platform. As such, there may be particular information which you as an investor may not be able to obtain through the Platform.
- It is therefore essential for investors to utilize their rights prior to committing to invest by asking questions, reading all information given carefully, and seeking independent professional advice if necessary.
Risks involved in investing in early-stage as well as growing businesses can be listed as follows :
Uncertainty of returns : Depending on the shareholders’ agreement (which differs from business to business), certain companies may opt not to pay dividends, therefore depriving investors of early and short-term returns. Businesses often reinvest what they earn in the growth or survival of the business, which may be the priority for both business owners and shareholders.
Lack of liquidity : There is no guarantee that an investor will be able to sell their shares when they want to and to whom. Currently, there is no recognized secondary market for trading shares in companies funded by equity crowdfunding. (Please read more on ‘exit strategy’ on our FAQ section).
Dilution : The same company that reaches its funding target may need more funding to grow or survive at a later stage. It is possible that the company may issue more shares, thus decreasing the value of the shares as offered previously on listing.
Material events : Start-up and growing businesses often have highly specialized and focused offerings. This may lead to vulnerability of the business to internal and external threats, making it difficult for the business to absorb material events such as loss of key personnel and customers
Lack of control : Business rarely give up a big portion of their shares to investors, making most investors a minority shareholder individually or collectively. Minority shareholders have little or no influence on how the company is run. Having said that, as a concerned shareholder, investors may make enquiries as well as to offer assistance in ways that the business owners see fit.
As a rule of thumb for all potential investors, investments made through equity crowdfunding should be in the effort to diversify one’s portfolio and to spread risks. Investors are highly advised to acquire as much information on the business they want to invest in order to make an informed investment decision and to carry out an independent due diligence if necessary.
Guidelines & Eligibility
ATA PLUS’ ECF Platform is open to all types of investors subject to compliance with the Security Commission’s investment limits which are applicable to the following investor types:
- Sophisticated Investors : No restriction on investment amount
- Angel Investors : A maximum of RM 500,000 within a 12-month period
- Retail Investors : A maximum of RM 5,000 per issuer with a total amount of not more than RM 50,000 within a 12-month period
Investors who choose to invest in an Issuer also benefit from a cooling-off period of six (6) business days commencing on the date the investment is made, within which investors are free to cancel / withdraw their investment should they change their mind and obtain a refund of their investment.
Being listed on the ECF Platform is an attractive and innovative way for Issuers to raise funds as such listings will not require the Securities Commission’s approval under section 212 of the Capital Market and Services Act 2007 nor is it subject to the requirement of having to register a prospectus.
Micro-funds are also permitted by the Securities Commission under its Guidelines to participate and raise unlimited funds from sophisticated investors and angel investors through the ECF platform, provided the micro-fund also meets the criteria prescribed by the Securities Commission under its Guidelines.
Only MALAYSIAN incorporated private limited companies (excluding exempt private companies), unlisted public limited companies, limited liability partnerships, and registered micro-funds are allowed to raise funds on the ECF Platform, whereas the following entities are prohibited by the Securities Commission under its Guidelines from raising funds through the ECF Platform:
- Commercially or financially complex structures (i.e. investment fund companies or financial institutions);
- public listed companies and their subsidiaries;
- companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool);
- companies other than a micro-fund that propose to use the funds raised to provide loans or invest in other entities;
- companies with a paid up share capital exceeding RM 10 million; and
- any other type of entity that is specified by the Securities Commission.
An issuer is also NOT ALLOWED to be hosted or raise funds concurrently on multiple equity crowdfunding platforms.
An issuer can only utilise the ECF platform to raise a maximum amount of RM 20 million during its entire lifetime, excluding the issuer’s own capital contribution or any funding obtained through private placement exercises.
Issuers which intend to be listed on the ECF Platform to raise funds are required to disclose the following information / documents to ATA PLUS and the investors :
- Information that explains the key characteristics of the issuer ;
- information that explains the purpose of the listing and the targeted fundraised amount;
- information relating to the business plan of the issuer; and
- financial information relating to the issuer which include:
- for Offerings below RM 300,000.00 : certified financial statements / information by the issuer's management, if it is required by ATA PLUS for verification purposes;
- for Offerings between RM 300,000.00 to RM 500,000.00 :
- Audited financial statements of the issuer where applicable (e.g. where the issuer has been established for at least 12 months); and
- Where audited financial statements are unavailable (e.g. the issuer is newly established), certified financial statements / information by the issuer’s management;
- for Offerings above RM 500,000.00 : Audited financial statements of the issuer.
Consent to gather User's personal information
ATA PLUS will gather personal information submitted by you through the Site, regarding information on your browsing activity when using the site, any communication with ATA PLUS directly via writing, phone or email and information obtained through the use of the Service.
ATA PLUS may, in addition to other information, gather the following general information about you :
- Your name, email address, residential address, telephone number, date of birth and password.
- Preference information such as Watch List, transaction history and marketing preferences.
- Information on your business such as your company name and number, company details and key personnel as well as professional profile.
- Information that you provide to ATA PLUS via writing, email or phone.
- Details of your browser, domain name and IP address, and the details of any website you linked from to the Site.
- Other additional information required from time to time.
- If you choose not to provide information when requested, you may not be able to fully utilise the Site and its Services.
Use of User's personal information
The information that ATA PLUS gathers from you may be used for a number of purposes relating to the functions and Services provided by the portal, which include :
- To assess and ascertain your suitability to register an account with ATA PLUS and utilise the Services.
- Performing the Services and any assistance required in connection with the Services.
- In case of entrepreneurs/issuers seeking capital, to verify and approved the disclosures you make to potential investors.
- Provide you with information about products and services and new investment opportunities that ATA PLUS thinks may be of your interest.
- To allow third parties with whom ATA PLUS is partnered with (Partners) to provide you with information about products, services, and other opportunities that they (Partners) think may be of interest to you.
- To contact you to ensure customer satisfaction in respect of ATA PLUS’ role as the Service provider.
- To monitor, improve and administer the Site
- Responding and following up on any queries, complaints or requests you might have, and other customer care issues.
- To enable ATA PLUS to conduct surveys and analyse information pertaining to the User of the Services of the Site.
- To enable ATA PLUS to comply with legal and regulatory obligations or in connection with legal proceedings, crime or fraud prevention, detection or prosecution.
- Verfying any information provided to ATA PLUS by you with third parties and third party databases, including Government agencies.
- Carrying out credit checks on the Company with a credit reporting agency for the requirements of the Anti-Money Laundering And Anti-Terrorism Financing (Amendment) Act 2014. This will require ATA PLUS to supply the credit reporting agency with your information.
You understand that if ATA PLUS disclose your personal information to a credit reporting agency, they may hold your information on their credit reporting database and use it for providing credit reporting services and for any other lawful purpose and they may disclose your information to their subscribers for the purpose of credit checking or debt collection or for any other lawful purpose.
Understand the framework of fundraising
As in all investments, there are always risks involved. It is key that all stakeholders play a role in mitigating the risk factor(s), and that includes you as the investor, the entrepreneur, as well as the equity crowdfunding operator i.e. ATA PLUSService Agreement
As in all investments, there are always risks involved. It is key that all stakeholders play a role in mitigating the risk factor(s), and that includes you as the investor, the entrepreneur, as well as the equity crowdfunding operator i.e. ATA PLUSInvestment Agreement