RE: Suspended28 Feb 2024 16:39
What are some of the reasons behind shares being suspended?
Broadly speaking, companies have their shares suspended either because of breaking the rules of listing on the market, or pending an announcement clarifying the company’s financial position.
In terms of breaking the rules of listing, trading is suspended to allow the company to formally address these matters of concern to the satisfaction of regulators, thereby protecting current and potential investors.
When it comes to the AIM Market, as well as failing to submit half-year reports and annual accounts on time, other common causes for shares being suspended include:
The AIM company ceasing to have a nominated adviser. If within one month of this suspension, the company has failed to appointment a replacement, then the AIM securities will be cancelled (Rule 1).
The AIM company announcing that a reverse takeover transaction has been agreed or is being contemplated. In this instance, shares will remain suspended until the company has published its admission document in respect of the enlarged group or the proposed negotiations are terminated (Rule 14).
The AIM company putting in place changes that can be judged a fundamental change of business. Under such circumstances, the company must work alongside their adviser to re-prepare their AIM admission document and go through the processes required for re-admission to trading of its shares (Rule 15).