The PLUS Market - An overvie on plus market-v.pdf · 2014. 10. 13. · Improved profile and status for your company to punch above its weight Cost effective access to the wealth of

Corporate Adviser member of the PLUS Market

Copyright © 2007 Maxim Corporate Finance LLP

The PLUS Market - An overview

Maxim Corporate Finance LLP

Trust, expertise and teamwork- vital elements of

a lasting relationship



ContentWhat is the PLUS Market

Why the PLUS Market

Key benefits of PLUS listing

Who is involved

How to list on PLUS

Key obligations of PLUS listing

Taxation aspects

Costs and time-scale

Maxim Corporate Finance

Conclusion



What is the PLUS MarketA new Stock Exchange in London, world’s premier financial centre

Recognised Investment Exchange (RIE) status from FSA and regulated under EU MiFid

It competes directly with other traditional Exchanges

Operating primary and secondary market services

Trading > 1,000 companies shares, including FTSE small Cap companies

For domestic & international companies; and an entry point to European capital markets

A quote driven trading platform

Three types of listing: Introduction, private placement and IPO with prospectus



Why the PLUS MarketDedicated Market for dynamic SME’s

Unique regulatory framework: balancing the needs of investors and growing companies

A more flexible regulatory framework: no IFRS, improved corporate governance

Provides access to London’s vibrant & liquid capital markets

Flexible and cost effective solutions for listing and share trading

Unlike LSE, no minimum trading record or free float or market capitalisation



Key benefits of PLUS listing- (1)

Improved profile and status for your company to punch above its weight Cost effective access to the wealth of institutional capital available in London as well as the deepest pools of capital in EuropeOffers better value to companies and investors than nearest equivalentMore liquidity and ability to use sophisticated financial instrumentsA “currency” for acquisition and expansion An independent valuation of companyOpportunity for investors to realise valueMeaningful employee share option schemesCredible with customers and others, specially those becoming aware of you for the first time



Key benefits of PLUS listing- (2)

Improved stability for corporate strategy & planningLow costs of secondary offering of securities to raise financeIncreased company valuationCash shell listing is possibleAdvantages of better corporate governance & management structureCompany culture of a publicly listed company Improved staff recruitment and retention



Who is involvedCorporate advisers as sponsors, main players for admission process

Reporting accountants assess working capital requirement on admission

Solicitors verifying admission and other related documents

After admission

Broker dealer, FSA regulated stockbrokers dealing in PLUS securities

Market makers provide liquidity by giving bid & offer prices to brokers

Registrar to maintain the shareholder register

Financial PR to communicate key messages & building relationships



How to List on PLUS

Only approved Corporate Advisers can sponsor and advise company.

Corporate Advisers assess suitability and decide whether to sponsor a company

Corporate Advisers work with solicitors and reporting accountants

Corporate Advisers prepare company and its management, prepare documents, and submit to PLUS panel

Upon admission, normally after an interview, the retained corporate advisers assist the company with on-going PLUS rules compliance



Key obligations of PLUS listing-(1)

Compliance with PLUS rulesRetain corporate advisers at all times to assist with complianceAnnounce “price sensitive information”Produce audited accountsIts shares must be freely transferable & eligible for CREST (electronic settlement)Comply with City Takeover CodeComply with: FSM Act 2000, Prospectus Directive Rules (PDR)



Key obligations of PLUS listing-(2)

Compliance with Prospectus Directive Rules for primary and secondary offer of its shares if raising>2.5 m EurosAppoint two market makers who are registered with the PLUSDisclosure of “substantial shareholding” and any deal by its directors and their connected personsAnnounce financial results within 5 months of financial yearSupply interim financial results (half year accounts) within 3 monthInstitute a sound system of internal control & management information



Taxation aspects (UK)

Many significant tax benefits with PLUS listing for the company & shareholdersCompany’s EIS and EMI status unaffected100% tax relief with PLUS shares with “BPR”with conditions for IHTInvestment from VCT’s is allowedPLUS shares are “business assets” and eligible for Taper Relief 75% reduction in CGT after 2 years (this may be phased out from April 2008)CVS investment into PLUS companies attracts tax relief at 20%PLUS quoted shares are allowed for SIPPinvestment from



Costs & time scale

Initial PLUS admission feeInitial professional costs: corporate advisers, solicitors, reporting accountantsAnnual PLUS membership feesCorporate advisers annual feesOther un-quantified costs: management time and attentionAbout 3-6 months preparing application to submit to PLUS admission panel



Maxim Corporate Finance We are specialists SME corporate finance advisors

We offer a multi-disciplinary approach encompassing financial, legal, accounting and management consulting needs of clients

We offer a full project management service to you from start to finish

We liaise with your professional advisers and reduce the costs & pressures on your staff

We minimise the demands and burden on your time & attention throughout

We are flexible with our costs and fees Flexibility with our costs and fee arrangement

We work closely with PLUS regulators to identify and resolve any issues that may arise

We provide support and advice to ensure you ready for the LUS Market



Maxim Corporate Finance

We align your personal and business objectives for your success

We match our expertise & creative solutions with your objectives and growth ambitions

We have an extended network of business contacts

We build a lasting relationship with you based on trust, expertise and teamwork

For efficiency & quality control, we allocate you an engagement partner and an assignment partner

We do make all the difference where it matters



Conclusion

New dedicated Stock Exchange in London for ambitious growing SME’s

Significant benefits financially, commercially and taxation-wise for the company as well as its shareholders

Flexible and cost effective solutions for listing SME’s in London, and a real alternative to AIM listing

Access to capital markets and enhanced company valuation

Some obligations of disclosures and transparency

Cost effective and relatively fast process for dynamic SME’s to list in London- the world’s premier financial centre

Maxim Corporate Finance LLP will take away the pain and project manage the whole process start to end

Documents

The PLUS Market - An overvie on plus market-v.pdf · 2014. 10. 13. · Improved profile and status for your company to punch above its weight Cost effective access to the wealth of