Filing Complaints with the Exchange - what to expectAs someone already mentioned in this thread, the Exchange isn't generally going to take action to prevent a financing when management and the board of a listed company have determined that additional capital is necessary.
It's important to recognize the respective roles of the Exchange, the Board and Management of the listed companies, and the shareholders.
Most importantly, it's critical to recognize the authority of an Exchange when filing a complaint, to help manage your expectations.
Pursuant to the rules of the Exchange (and very similar to ALL exchanges), the Listed Companies are bound by the policies/rules of the Exchange by agreement, not by law. If a Listed Company violates the requirements, the Exchange has limited options - suspension, and/or delisting.
The threat of one of of those actions is the only hammer - exchanges can't charge officers and directors with offences, they can't levy fines against them without a hearing process - so if an exchange wants a company to take a specific action, it's with the threat of suspension or delisting. It's difficult for an exchange to impose a condition on a company, ostensibly in the public interest, if it's for something that isn't otherwise addressed by the policies/rules of the exchange or securities law.
What if the Exchange discouraged the company from raising capital when it could, then 3 to 6 months later when it needed the capital the market conditions were poor and the dilution was two to three times greater (if the Company could even raise the money then)? As an investor, I would immediately place the blame on the Exchange for interfering when the Company had the chance.
That said, if an announcement of a financing is inconsistent with recent disclosure made by the Company, perhaps clarification is in order.
Finally, a couple of key points if you're going file a complaint to an Exchange or regulator:
1) Keep it factual and accurate, providing sources where possible. Don't just fire off a rant and expect something to happen.
2) You are passing on concerns about a public company and/or the actions of the officers and directors of a company in the context of the Exchange rules. It is not a personal civil case to which you are entitled to additional information. You will not be kept up to date or provided any information other than an acknowledgement to your submission. It doesn't mean the Exchange isn't concerned, or a Commission is ignoring you - it's because you aren't entitled to any information. It protects the integrity of the process. If it is determined the the Company violated a rule or law, you'll see the results of that. Sometimes that will just be a clarification by way of an updated filing or news release.
Also, before you send a complaint on this specific matter, consider this: unless you've got some really creative analysis, the Exchange has already heard it. One complaint to draw attention to it is just as effective as 10 complaints saying the same thing - it's either justified or it's not.
Mark