Listing on AIM

In conclusion, the biggest difference between a US listed company and an AIM listed company; NO Sarbanes-Oxley compliance. Listing on AIM eliminates the SEC governmental review process of the prospectus, the multitude of periodic regulatory filings and mandatory financial reporting requirements.

The reason US and foreign companies are flocking to AIM is because the companies can not find underwriters in the US. Why? Because their deals are too small and the inherent risk is too great for the underwriter! There is a reason the average IPO in the US last year raised an average of $229MM. Those stats reveal a couple of startling realities: a) underwriters are only interested large deals and b) the average company going IPO in the US has an approximate market cap of $800MM. This leaves emerging growth companies with very fewer options. If a company can not qualify for listing on a US exchange they have three choices:

1. Go public via a Direct Public Offering (“DPO”). This involves no broker dealer and the company is the issuer. This process can upwards of one year. The company can then try to raise capital via a PIPE transaction once they are trading on the OTCBB.

2. Back your company into an OTCBB shell. It is fast and you can be public in about 60 to 90 days. You can then raise capital via a PIPE transaction.

3. Listing on AIM gives an emerging growth company the opportunity to go public and raise capital for reasonable fees and under reasonable terms and conditions.
   The only downside to listing on the AIM is that you are basically non existent to US investors and exposure the US capital markets.

I hope you have enjoyed this seven part series. For additional information please contact Ralph Amato at 858 729 0075 or email Ralph@ventanacapitalpartners.com

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