Substantially all assets - AIM rule 1510 Jun 2021 19:03
‘The Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale.’
SO IMO the proposal that is being progressed is the one that
‘Shareholders should note that one of the potential transactions proposed is one to which AIM Rule 15 (the fundamental disposal rule) would likely apply. Accordingly, a circular would be published by the Company and the transaction would be conditional on the consent of the Company's shareholders being given in a general meeting.’
An AIM Rule 15 cash shell is an AIM company which has divested of all, or substantially all, of its trading business, activities or assets and/or has taken action the effect of which is that it will cease to own, control or conduct all or substantially all of its existing trading business, activities or assets (AIM Cash Shell). Changes were introduced to the AIM Rules on 1 January 2016 to provide that, within six months of becoming an AIM Cash Shell, the company is required either to:
• Conduct a reverse takeover.
• Become an investing company under AIM Rule 8.
Need help understanding how this will work. MT is for sale as is documented in the accounts RNS. So if this is classed a ‘substantially all of the assets’ and triggers Rule 15, WK and JV +Tailings remain in the cash shell.
My question is how does that work as they have 6 months to conduct a reverse takeover or become a investing company (requires 6m cash on the books).
Rosgeo have quoted that the JV is between subsidiary company of them and EUA. (Can find extract if needed.) Now is the plan to reverse takeover this subsidiary?
Just after peoples thoughts as to when rule 15 is triggered and what happens next if it is just MT sold.
Or am I completely in the wrong ball park.
GLA
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