RE: Word on the street10 Oct 2025 16:57
Span and EC - Here it is
✅ What is Forward Selling?
Forward selling refers to the practice of selling shares you don’t yet own, typically based on an expectation or agreement that you will acquire them later — often at a lower price.
This can happen in a few contexts:
Placings or fundraises: Investors might sell shares into the market before officially receiving them in a placing.
Short selling: In more general terms, forward selling can resemble short selling — selling shares now and buying them back later.
📍 On AIM — Can it happen?
Yes, it can happen, but under certain conditions:
✅ Common in placings (private fundraises)
An investor may agree to subscribe to shares in a placing at, say, 2.5p — but starts selling shares into the market in advance, maybe at 3p, locking in a profit.
This is technically legal if:
They have binding allocation in the placing.
They disclose positions properly, if thresholds are crossed.