Problem Thinking Company Limited is one of the top suppliers of security software products and solutions in Ghana with a market share of over 30% in the retail segment. Its customers includes people of all sections of the society i.e. both households and corporate. Its unique threat detection system works to detect security threats including virus attacks in real time to protect users I.T assets across varied platforms and devices. The company has an established track record of growth and financial performance. At present the company operates only through its website. The company now intends to launch a range of computer accessories and plans to market it by opening its own retail outlets. So, the board of directors of the company has decided to only raise capital for the first time through an issue of shares, but at the same time they do not wish to get into the hassles of launching a public issue. .

In the context of the above case:

Required:

i. Name and explain the way through which the company can raise finance by allotting securities to selective individuals and institutions only. (2 marks)

ii. Can the company also raise capital through a right issue? Why or why not? Give a reason to justify your answer. (2 marks)

iii. Give TWO reasons why the company does not wish to launch a public issue