On 15 October 2015, the LSE issued AIM Notice 42 as a consultation paper on the proposed changes to the AIM Rules for Companies which apply to investing companies.
LSE proposes to amend:
- AIM Rule 8 (investing companies), to increase the amount in cash that an applicant seeking admission must raise from £3 million to £6 million; and
- AIM Rule 15 (fundamental changes of business), to introduce a provision that an AIM company that becomes a cash shell following fundamental disposal will be regarded as an "AIM Rule 15 cash shell." This Rule will also state that, within 6 months of becoming an AIM Rule 15 cash shell, the AIM company must make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14. There is also a proposal to ensure that where an AIM company became an investing company prior to the date on which the new rules come into effect, the previous AIM Rule 15 (as set out in May 2014) will apply. LSE also proposes to include some new Guidance Notes on AIM Rule 15.
This consultation closed on 12 November 2015, and on 22 December 2015 the LSE published AIM Notice 43 which provides feedback on Aim Notice 42 and confirms the changes to the AIM Rules. The revised AIM rules have been effective from 1 January 2016.
This consultation paper can be accessed at:
http://www.londonstockexchange.com/companies-and-advisors/aim/advisers/aim-notices/aimnotice42.pdf
The feedback on AIM Notice 42 can be accessed at:
http://www.londonstockexchange.com/companies-and-advisors/aim/advisers/aim-notices/aim43.pdf
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