Document ID: chunk:federal_register_of_legislation:F2013C00808:body:0:p6
Version: federal_register_of_legislation:F2013C00808
Segment Type: other
Provision Reference: 
Character Range: 13789–16577

by:

         (a) notifying the Board in writing;

         (b) demonstrating to the satisfaction of the Board that the privately sourced capital has   been committed;

         (c) executing a licence agreement in a form and containing terms acceptable to the Board and in accordance with this direction; and

         (d) complying with any other requirements of the Board as notified in the offer of a licence (including entering into documents).

         23. The Board must provide for the offer to lapse if acceptance does not occur within six months of the making of the offer.

         24. If in any particular licensing round an offer of a licence is not accepted or lapses, the Board may offer a licence to the next applicant in that licensing round that the Board considers would best achieve the objectives of the IIF program.

Pre-licence Investments

         25. The Board may make provision in the IIF guidelines for the conditions to apply for investments in or the provision of finance to eligible investee companies made or  agreed to be made following the lodgement of an application, but prior to the execution of the licence agreement.

PART 5—THE OPERATION OF IIF LICENSED FUNDS

Eligible investee company

         26. The Board must make provision in the IIF guidelines, licensing agreement or other contractual documents relating to an IIF licensed fund requiring the fund to only invest in or otherwise provide finance to eligible investee companies.  For a company to be an eligible investee company, it must satisfy all of the following:

         (a) it is commercialising the results of R&D activities or will, under the investment arrangement with the fund, be required to commercialise the results of R&D activities;

         (b) at the time the fund first invests in or provides finance to the company it is
             at the seed, start-up or early expansion stage of its development;

         (c) it operates in the traded goods and services sector;

         (d) the product or service to which the commercialisation of the R&D activities relates is produced with the primary purpose of multiple sale to a variety of unrelated entities;

         (e) it has a majority of its employees (by number) and assets (by value) inside Australia at the time when the fund first invests in or provides finance to it;

         (f) at the time when the fund first invests in or provides finance to the company, the  average annual revenue over the previous two years of income does not exceed $4 million per year and the revenue in either year is not in excess of $5 million.  The calculation of revenue for a year of income must exclude any abnormal items; and

         (g) at the time when the fund first invests in or provides finance to the company, it