BusinessCompany NewsAIM cash shell deadline draws near

AIM cash shell deadline draws near

Cash shells have one day left to close a deal or face suspension 

After months of warnings, AIM cash shells that have raised less than £3m have
just one day left to do a deal or face suspension from the London Stock
Exchange’s junior market.

The deadline has sparked a frenzy of activity in the market, as investors
move to trade out of stocks that are likley to miss the deadline, and the
companies themselves chase reverse takeover deals.

Cash shells that miss the deadline – and it is estimated that between 55 and
60 are facing the chop – will be suspended for six months.

If they do not close deals in this period, they will be forced to delist and
go private or seek a listing on a separate exchange, such as OFEX.

The deadline was put in place by AIM to clean up the market and prevent
shells from raising minimal funds and then just sitting on investors’ money.
From now on, any cash shell joining AIM must raise at least £3m to secure a
listing.

The LSE is set to provide a list of the shells that missed the deadline on
Monday. 

For more on AIM cash shells and the LSE deadline visit
accountancyage.com/2151811

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