Shane started a business in 2006 involving direct marketing of a range of cosmetic products. The business operates through Glow Pty Ltd. The business has been quite successful and in 2016 Shane decided to expand and change from direct marketing to distribution of products through various retail outlets. In that year he converted the proprietary company into a public company Glow Ltd. He now wants to raise $10 million in additional funds to assist with the expansion and to repay some debt. One option is to offer shares in Glow Ltd to a number of institutional investors. An alternative would be to 'float' the business, that is, offer the shares to the public and apply for listing on the Australian Securities Exchange (ASX). Shane is optimistic about the company's prospects. He believes that with favourable economic conditions the company will double in size within a year.

Required: Advise Shane as to the following:

a.What are the implications under Ch 6D of the two fundraising options being considered? (8 marks), and

b.If a decision is made to float the company and seek its listing on the ASX, what type of disclosure document will be required and what information must it contain? (8 marks), and

c.If Shane's forecasts concerning the prospects of the company are included in the offer document, what are the potential consequences should the forecasts not be met? Are there any precautions in relation to disclosure that Shane, the board of directors, and the advisers should take? (9 marks)