It has been more than four months since the initial schedule for the GAX to start operation.
All systems for the operation of the Alternative market are in place and financial resources have been mobilised to support the operation.
The concept of the GAX is to address the complaints of Small and Medium Enterprises (SMEs) about not being able to raise capital on the regular market.
Ghana Stock Exchange (GSE) would allow SME’s with minimum capital of Ghc 250,000 and operating for a year to list on the GAX.
Ideally the GSE only accepts companies with at least 3years of operation and a minimum capital of Ghc 1 million to list on the Exchange but GAX is making it possible for SMEs to list.
Companies who list on the GSE are required to publish their financial statements quarterly. But for the GAX, SMEs will be mandated to publish their statements half –yearly or semi- annually. [For that, I don’t understand. Small companies should rather report quarterly so investors can know what’s happening to them and the effects of their decisions are.]
In preparation for the GAX, GSE has set up a GHc 1million revolving fund to support listing expenses of the SMEs.
The Venture Capital Trust has contributed US$ 500,000 into the fund.