AIM suspends 38 cash shells
A total of 38 cash shells are suspended from AIM after failing to meet the junior market's deadline
After months of waiting and speculation, 38 cash shells were suspended from
AIM this morning after missing the deadline to do a deal. Just a few weeks ago,
as many as 50 shells still needed to complete deals.
The total combined market cap of the shells was approximately £54m, the
average size of a single AIM company.
A London Stock Exchange spokesman, however, added that the shells had
experienced frenetic trading from the middle of last week as shareholders
attempted to trade out of the stocks as the 1 April 2005 deadline approached.
The shells that were suspended this morning still have six months to do a
deal before being forced to leave the market for good.
The deadline imposed by AIM was aimed at cleaning up the number of shells
that had raised £3m or less and were simply sitting on the market without
investing their funds. From now on, a cash shell with have to raise more than
£3m to gain admission to AIM.