An Aim company that becomes a cash shell following a fundamental disposal of its business/assets will be regarded as an ‘Aim Rule 15 cash shell’ rather than being automatically treated as an investing company. It must then either undertake a reverse takeover or obtain shareholder approval to cancel its admission, and return remaining funds to shareholders.
The LSE has consulted on proposed amendments designed to make the admission and disclosure standards easier to use.
The proposed amendments include renaming the Specialist Fund Market as the Specialist Fund Segment (SFS) to clarify that the SFS is a segment of the LSE’s regulated market rather than a separate listed market. New admission conditions are also proposed:
• The applicant must disclose post-issue free float.
• There must be a sufficient number of registered holders of the securities to be admitted to provide an orderly market in the securities following admission.
Cathy Pitt is funds partner at law firm CMS
