Look Ma. No investment statement

Investing in a company without an investment statement or a prospectus may seem strange but it is possible now.

Wellington-based company I -Grow is seeking to raise $4.1 million on behalf of four small sized companies.

They have an exemption under the Securities Act which means they can raise the money without all the normal documentation, such as a prospectus.

Potential investors have to register with the Economic Development Association before they can get details of the offers.

This method of raising money is seen to be useful from the companies' point of view as it is a cost-effective form of capital raising. It is seen as an alternative to the Stock Exchange's New Capital Market approach which has proved too costly and bureaucratic for companies.

From an investors perspective the I-Grow offer illustrates the broadening range of options for investing in shares.

The four companies fall into a category known as micro-cap stocks. This is considered a genuine investment sector and complimentary with others.

Also they be considered a type of private capital as the companies involved are often either in a start-up phase or they have an idea, concept or product they are developing.

This is the second pack of offerings from I Grow. Four of the five companies in the first offering successfully raised money last year.

This batch includes:

• Panztel - a company with a timekeeping service called EziTracker. Based in Tauranga seeking $1.2 million.
• Terranova Pacific Services - a health records software developer. Wellington, seeking $950,000.
• Water Master, which extracts drinking water from the atmosphere. Based in Auckland is after $1 million.
• Crest Licensing Systems, a commercial cleaning franchisor. Dunedin, wants $971,000.

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