Together, they had $19 million in equity financing and proposed to spend $310.4 million over five years on Canadian television production.
Second, legal fees are lower than with equity financing.
On the other hand there are 3 disadvantages of using equity financing:
As of 2012, Ensemble has raised $38.5 million of equity financing.
In certain circumstances, equity financing may require compliance with federal and state securities laws.
Would a board really put the corporation at risk by allowing large-scale equity financing?
Junior companies rely on equity financing as their principal means of funding exploration.
The advantage: unlike a loan, equity financing does not have to be repaid.
The first round of equity financing closed in 2008 and raised US$1,531,323.
Here is a very simplified example of how costly equity financing can be, particularly for a rapidly growing company.