On 7 December 2018, the London Stock Exchange (LSE) publicly censured and fined Bushveld Minerals Limited ("Bushveld") £700,000. The fine was subsequently discounted to £490,000 for early settlement. Bushveld, a mineral development company, was considering a reverse takeover pursuant to AIM Rule 14 and had agreed to pay an exclusivity fee (subject to a solicitor's undertaking) that, in the context of its financial position, constituted a material sum.

The LSE found that the Bushveld had breached the AIM Rules, in particular:

  • AIM Rule 11, by failing to comply with its disclosure obligations to notify information without delay when the undertaking was given. The giving of the undertaking created binding obligations in respect of the exclusivity fee, which was a new development requiring disclosure without delay; and
  • AIM Rule 31, by failing to provide its nominated adviser with information in relation to the undertaking, in circumstances where Bushveld knew or ought to have known that this was information that the nominated adviser had reasonably requested and required in order to fulfil its obligations to the LSE.

The LSE statement can be accessed here.

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