As a small guitar manufacturing business, Jams is to begin manufacturing custom made guitars as a new direction for commercial expansion. The new venture needs a large capital injection so the directors decide to offer securities in Jams. Three options of different levels of debt and equity capital as well as obligations will be discussed in the following part. After careful comparisons among the three options, one of them will be recommended based on the provisions and Jams’ specific circumstance. Among the three fundraising options, disclosure obligation plays an essential role in the regulatory structure for corporate capital raising. The purpose of disclosure obligations arises from the issue of disclosure documents by the company under Ch 6D of the Act. Just like Hurst v Vestcorp Ltd (1988) 12 NSWLR 394, Jams is required to provide disclosure documents when inviting investors to provide capital so that investors can make informed investment decisions and protect themselves from exploitation based on the disclosure of information. In this way, the imbalance of information between directors of Jams and investors can be addressed: ASIC v Axis International Management Pty Ltd (No 5) (2011) 81 ACSR 631. To be more specific, in the first option, since the amount of money to be raised is $10 million or less, a prospectus is not required under s 709(4). Since Jams is a small business in a small country town, it should properly choose its targeted customers when it starts to test the market. Substantial research should also be undertaken for the acoustic models. In the second option, the amount of money to be raised is also $ 10 million or less, so that a prospectus is not required under s 709(4). As defined in s 92, securities are essentially investment instruments such as shares and debentures. The balance between the amount of debt and the amount of equity, that