Digitalbox Regulatory News (DBOX)

3 Mar 2005 07:00

PLUS MARKETS GROUP PLC (THE "COMPANY") OFEX MARKET INTRODUCES COMPREHENSIVE RULE CHANGES FOR COMPANIES HIGHLIGHTS * NEW STAND-ALONE RULEBOOK - drafted in user-friendly language with additional guidance notes to assist compliance. * NEW SHAREHOLDER APPROVAL REQUIREMENT FOR MARKET WITHDRAWAL - 75% shareholder consent necessary for cancellation of an issuer's trading facility, to ensure that investors participate in key decisions involving a fundamental change to their investment. * NEW LOCK-INS - directors of newly-established issuers to be subject to dealing restrictions for their first year on-market, as well as under obligation to disclose significant changes in financial position and performance as soon as possible. * IMPROVED ISSUER TRANSPARENCY - including greater disclosure of company information on the first day of dealings, and strengthened transparency for the backgrounds, share dealings and related party transactions of directors. * CLEAR CASH SHELL POLICY - eligible for admission but subject to strengthened disclosure of investment strategy, management and significant investors. * EFFECTIVE AS OF 4 APRIL 2005. Following a period of close consultation, initiated in November 2004, with leading smaller company investors and growth companies, PLUS Markets Group today announces a comprehensive set of changes to the rules which apply to companies traded on Ofex. The drive behind the changes has been to meet the specific needs of investors in smaller companies, by enhancing transparency where investor protection so requires with regards to initial and continuing disclosure. The new rules are carefully balanced to remove unnecessary burdens on smaller companies while significantly increasing clarity for those seeking to commit funds to Ofex. Consequently, the new regulatory framework is likely to stimulate more funds for smaller businesses. The rule reform is part of an overall strategy to develop Ofex as the only independent market dedicated to smaller companies in the UK. Another step forward has been to increase liquidity on Ofex through the introduction of a competing market maker system in July 2004, which has also seen narrowed spreads and firm stock prices for quoted companies. PLUS Markets Group has also published a tax guide outlining the inheritance, CGT and VCT relief available for qualifying companies. Commenting on the rule changes today, Simon Brickles, CEO, of PLUS Markets Group said: "The feedback given to us by the market has been key to the Ofex rules change. While we have increased transparency and protections on the market, I believe investors in smaller companies want to see as much management time and money as possible going towards generating shareholder value and not on unnecessary regulatory burdens. What PLUS Markets Group has done is to create a bespoke set of rules for the governance of smaller companies on a stock market that provides appropriate checks while allowing entrepreneurs to fully pursue the opportunities presented to them through the issuing of equity." Hard copies of the OFEX Rules for Issuers have today been sent to all companies admitted to trading on the Ofex market and their Corporate Advisers. Additional companies are available on request. In addition, the new rules may be inspected on the Ofex website at www.ofex.com. For further information please contact: Conduit PR: 020 7618 8760 Laurence Read: +44 07979 955923 / Leesa Peters PLUS Markets Group plc: 020 7553 2000 Simon BricklesEND