CNV Updated Data for PyME CNV and Raised Maximums for Issuance

In order to promote the access of small and medium-sized enterprises (“SMEs”, and “PyMES CNV”, after their acronyms in Spanish) the Argentine Securities and Exchange Commission (the “CNV” after its acronym in Spanish) updated the total annual income that the companies must have to qualify as PyMES CNV. Therefore, under the Resolution, the CNV has increased said amounts as detailed below:

In addition, the Resolution, as for the limits on qualifying as a PyMES CNV when the company was controlled by, is a parent Company, or is involved directly or through another company or economic group that does not qualify as a PyME CNV, includes a definition of “control” and “related parties” to determine said reach. For those purposes (i) in case of “control”, it is considered that a Company is being controlled by, or is a parent company when it is involved directly or through another controlled company, in over fifty per cent (50%) of the first company’s social capital, and (ii) in case of “related parties”, it is considered that a Company is related to another company/ies or economic group/s when they are involved in twenty per cent (20%) or more than the capital of the first one.

Lastly, the Resolution updates the issuance amount under this regime, raising the maximums in circulation for each PyME CNV regime. The maximums approved by the Resolution are ARS 900.000.000 for the “PyME CNV” regime (previously ARS 500.000.000) and ARS 500.000.000 for the “PyME CNV Guaranteed” regime (previously ARS 300.000.000). Likewise, the Resolution explains that the maximum cumulative under both regimes must not exceed ARS 900.000.000.

Through this Resolution and previous regulations issued by the CNV continues to strengthen the access of SMEs to financing their projects via the capital market.