That's doesn't bode well.

Different market, but not great.
Rules take their toll: listed crowdfunder throws in the towel

By John Kavanagh
Crowdfunding specialist CoAssets has ceased operations in Australia, citing the limited scope offered by new crowdfunding legislation as one of the reasons for what it hopes will be a temporary interruption to its business here.
CoAssets Ltd, which is based in Singapore, was listed on the ASX last August. Since it was launched in 2013 it has attracted 70,000 registered investors throughout the region and facilitated more than US$30 million of business and property finance. Its main markets are Singapore and China.
The company issued a statement last week saying it had made the decision to cease operations in Australia, with immediate effect, to allow it to adapt its business model to reflect the new crowdfunding rules. It is also seeking a “strategic partner” to help develop its business here.
Last month, the Corporations Amendment (Crowd-sourced) Bill was passed, opening the way from equity funding of small businesses.
For eligible companies, the bill provides temporary relief from reporting and corporate governance requirements that would usually apply to public companies. These obligations may be too expensive for small businesses and start-ups.
Relief, which applies for five years, includes an exemption from the requirement to hold an annual general meeting, permission to issue financial reports online only and a waiver of the requirement for audited financial reports until more than $1 million has been raised through crowdfunding offers.
A restriction in the law that limits eligibility to unlisted public companies has been heavily criticised because most small business are proprietary companies.
There has also been plenty of debate about the merits of other restrictions in the rules, which include the type of securities that can be issued, the size of businesses that can access crowdfunding and the amount of equity issuance allowed in each 12-month period.
Getty Goh, CoAssets chief executive, said the final form of the crowdfunding rules was a factor in the company’s decision.
“It limits the scope of what we can do in Australia,” Goh said. “However, we still see potential in the Australian market. We have had a lot of calls from Australian businesses interested in our funding model.
“We see the cessation of the business as a temporary step. We have to sharpen our business model. Our Australian base is in Perth and we will probably move it to the east coast.
“We are talking to some parties about a business partnership that will allow us to hit the ground running.”
CoAssets’ revenue in 2015/16 was just $2.2 million – but this was more than double the previous year. It reported a loss of $2.7 million, with high costs incurred in listing expenses and expansion in China and Australia.