Aquis Stock Exchange is proposing changes to its rules relating to the Access segment of the stockmarket and new admissions.
The consultation period ends on 2 September and comments can be sent to aqsebusinessdevelopment@aquis.eu.
Aquis wants to simplify the admission document for new entrants to Access. This involves standardising the additional information, which will be attached to the document. Companies with complex corporate structures or unusual share structures will not be eligible for the simplified document.
There is also a proposal to remove the requirement for a growth prospectus that would be approved by the FCA ahead of admission to the Apex segment. This reflects UK regulation changes and means that a prospectus will not have to go through additional scrutiny.
Eligibility criteria
Access companies will be required to adopt either the QCA or UK Governance Code. If they do not comply with individual parts of a governance code, then they will have to identify and explain why this has happened.
A minimum market capitalisation on admission of £2m is proposed because Aquis believes that companies with a lower valuation may not be suitable for a public market and may not have sufficient liquidity. The figure is currently £700,000. The minimum number of market makers on admission would be increased to two.
Speculative securities will not be eligible for admission. These can be bonds, debentures or preference shares that have a denomination or minimum investment of less than £100,000 and where the cash will be used for certain things. That includes providing loans to outside parties, buying investments or property and funding property development. Currently the minimum market value for debt securities is £200,000.
Sanctions
In the sanctions part of the regulations for Access the level of fine (of up to £100,000) has been deleted so that could mean higher fines.
Last week, Aquis Stock Exchange issued a disciplinary notice to Love Hemp Group (LON: LIFE) after omitting information in a fundraising announcement in February. The £100,000 fine was cut to £70,000 for early settlement.
Love Hemp did not reveal that not all the cash had been received and one investor did not pay the £1.2m it was supposed to for the shares. There was no update about this until May, thereby creating a false impression of the cash position. Trading in the shares remains suspended following the resignation of Peterhouse as corporate adviser.
