The UK’s Alternative Investment Market (AIM) gives U.S. companies greater access to capital with a more flexible regulatory approach.
Alternative Investment Market gives early development companies access to new public funding with fewer regulatory requirements, usually resulting in lower legal, accounting, and administrative costs, along with faster capitalization.
A product of the London Stock Exchange, Alternative Investment Market has funded in excess of £24 billion for more than 2200 companies since 1995.
AIM-funded capital provides companies a viable option to the Main Market:
- More flexible regulations
- Access to a unique, globally respected market
- Access to different capital than found in the U.S.
- Eligibility for a range of tax benefits
- Ability to raise as little as $3MM
- No restrictions on the number of shares issued
- No restrictions on the percentage of public shares
Main Market and AIM Differences:
Source: London Stock Exchange
|Minimum 25% shares in public hands
||No minimum shares to be in public hands
|Normally 3 year trading record required
||No trading record requirement
|Prior shareholder approval required for substantial acquisitions and disposals
||No prior shareholder approval for transactions*
Pre-vetting of admission documents by the UKLA
|Admission documents not pre-vetted by Exchange nor by the UKLA in most circumstances. The UKLA will only vet an AIM admission document where it is also a Prospectus under the Prospectus Directive
|Sponsors needed for certain transactions
||Nominated adviser required at all times
|Minimum market capitalization
||No minimum market capitalization
What type of companies should consider Alternative Investment Market funding?
- Investor demand tends to be strongest for the technology, energy, and financial companies with high-growth business models, but other industries have received AIM funding as well
- Companies which are profitable and have operated for at least three years
- Those with a strong global presence—especially the UK—or who intend to start foreign operations
- Companies already listed on smaller U.S. exchanges but are seeking a secondary, higher-profile listing
- Those companies considering a reverse merger to raise capital
- Organizations with sufficient working capital to sustain operations for at least 12 months following admission to the London Exchange
How UHY LLP can help companies seeking Alternative Investment Market funding:
UHY LLP is one of the leading U.S. firms in the AIM market: working with our UK affiliate UHY Hacker Young, (http://www.uhy-uk.com/) we have helped clients raise significant funding. UHY LLP was involved with a significant number of all the AIM offerings of U.S. companies last year, and our knowledge and experience will be a benefit to most companies interested in this market.
- We can advise clients on whether they qualify for AIM funding
- We help place companies with Nominated Advisors (NOMAD)
- UHY LLP can conduct the financial due-diligence required for companies seeking AIM funding
Click here for a link to the London Stock Exchange