Below we have outlined the various stages a company will need to go through in order to achieve a successful admission to AIM.

Preparing for Admission

  • Appoint advisors including accountant, lawyer, nominated adviser (Nomad) and stockbroker.
  • Agree and put into place appropriate corporate structure.

Stage 1

  • Directors' questionnaires to be completed and returned. The questionnaires will cover areas such as a director's experience.
  • Accountants and lawyers commence preparation of due diligence reports.
  • Nomad commences drafting of the Admission Document. An Admission Document is published by a company seeking admission to AIM in accordance with the AIM rules.

Stage 2

  • Due Diligence and preparation of Admission Document continues
  • Company arranges CREST and settlement arrangements.

Stage 3

  • Due Diligence and preparation of Admission Document continues.
  • Verification process begins. Verification is the process by which the Admission Document is checked to ensure that all the statements contained therein are accurate, true and not misleading of the company. Statements must be verified in order for the directors to avoid any potential criminal or civil liability.
  • Lawyers for the Nomad to prepare first draft of the Placing Agreement and Lock-In Agreement. The Placing Agreement is usually entered into by the company, its directors, the Nomad and broker. This agreement will contain certain warranties given by the directors and the company in favour of the Nomad and broker. A lock-in agreement will prevent certain important shareholders from selling their shares in the company for a certain period of time following Admission. The lock-in provisions can be contained in a separate lock-in agreement or may be included as part of the placing agreement.

Stage 4

  • Company Board Meeting held to approve, amongst other things, the Pathfinder Admission Document. This is an almost final form Admission Document issued by the company to assess the level of interest from potential investors.
  • Issue Pathfinder Admission Document to prospective investors.

Stage 5

  • Marketing and Road Shows commence.
  • Send out Placing Letter to investors who have expressed an interest, requesting them to commit to an investment.

Stage 6

  • Further Board Meeting to confirm the share price and approve the final Admission Document.
  • Payment and clearance of investment monies.

Final Stages

  • Board Meeting to approve allotment of shares to investors.
  • Admission.