RE: Acquisition13 Aug 2019 19:01
SUBSTANTIAL TRANSACTIONS (AIM RULE 12)
7.1 Classification
7.1.1 The AIM Rules classify acquisitions and disposals according to the size
of the transaction relative to that of the company proposing to make it by
reference to “percentage ratios”. Broadly, the percentage ratios are the
figures resulting from a comparison of each of the respective gross
assets, profits, turnover, and consideration to market capitalisation of the
company and gross capital. Where any of the percentage ratios equals
ten per cent or more, the relevant transaction is deemed a “substantial
transaction”.
7.1.2 In addition to substantial transactions the concept of “reverse takeover”
exists; this is an acquisition or a series of acquisitions in a 12 month
period by an AIM quoted company where any percentage ratios of the
above is 100 per cent or more or which would result in a fundamental
change in the business or in a change in board or voting control of the
quoted company.
7.1.3 Transactions of a revenue nature in the ordinary course of business and
transactions to raise finance which do not involve a change in the fixed
assets of the AIM company are excluded from classification as a
substantial transaction. The term “transaction” is not defined and should
be interpreted as widely as possible; there may be circumstances wher