Consultation On Proposed Changes To The AIM Rules

On 15 October 2015, the London Stock Exchange published a consultation paper proposing certain changes to the AIM Rules for Companies relating to the admission criteria for investing companies and the rules governing fundamental changes of business.

Admission criteria for investing companies

Under the current AIM Rule 8, a company applying for admission as an investing company must raise a minimum of £3 million in cash via an equity fundraising on, or immediately before, admission. The LSE is now proposing to raise this fundraising threshold to £6 million.

Fundamental changes of business – introduction of an AIM Rule 15 cash shell

Currently, under AIM Rule 15, where an AIM company becomes a cash shell following a fundamental disposal, it is automatically deemed to be an investing company and then has 12 months to either make an acquisition or acquisitions which constitute a reverse takeover or implement the investing policy previously approved by its