AIM’s consolidated newsletter “Inside AIM” is being reformatted and replaced with individual updates on AIM’s website. The first two such updates deal with a company’s free float and Rule 31 (AIM company and directors’ responsibility for compliance).
The AIM Rules do not prescribe a minimum level of free float but the new guidance notes that a sufficient free float is fundamental to the orderly trading and liquidity of the securities once admitted to AIM and is therefore inextricably linked to the company’s appropriateness to be admitted to AIM. The update clarifies some of the factors often discussed with advisers in this context.
In relation to Rule 31, the guidance notes that companies should have systems, procedures and controls in place to ensure compliance with the AIM Rules by the time of admission. Nominated advisers are expected to consider the preparedness of companies in a meaningful way including, for example, the review of financial policies and procedures documentation.