Prospectuses To Become Rarer and Shorter

As a result of amendments to the Prospectus Directive that took effect at the end of 2010, UK rules are likely to be relaxed in the near future so that no prospectus will be required where securities are offered to less than 150 persons in the UK or where the total consideration for securities included in an offer is less than €5 million. Currently the limits are 100 persons and €2.5 million respectively. Fundraisings of up to €5 million will therefore be cheaper and easier, and the ability to invite investment from up to 149 people (not counting qualified investors) may encourage AIM companies and unquoted companies, in particular, to include a retail element in their fundraisings.