A. No, plenty of companies do not. Companies join for a variety of reasons. Some join in order to get a valuation of the company or to to raise their profile. some may have strong balance sheets and may want to issue securities some time after admission.

Your Nomad and broker will advise you on fund-raising, and on the most appropriate methods of promoting your company's shares to the investment community. They will also be able to provide assistance in pricing your shares.

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Q. Which funds invest in AIM

A. All of the major institutions invest in AIM securities. In addition, the retail investor plays a significant role in terms of secondary market trading which is important in terms of providing liquidity in individual securities traded on the market.

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Q. What is AIM's regulatory status and how will AIM be affected by the Prospective Directive

A. From 12 October 2004, AIM will cease to be classed as a regulated market under EU Law and will become an exchange regulated market. This change has been driven by forthcoming changes in EU Law (Prospective Directive and Transparency Directive) which will affect our regulatory environment. By making this change we aim to preserve the existing admissions process and regulatory structure as far as possible which allows us to maintain a flexibility that small growing companies need, while retaining the high standards of regulation that have characterised our development.

None of this implies that AIM's high standards of regulation will be weakened. Quite the opposite: It means that we will be able to continue with the same quality of regulation that has served the market well for the past nine years. We will continue to monitor changes in the regulatory environment and will also consult on the possibility of adopting certain requirements introduced by the new European Directives. Our chief consideration will always be whether their inclusion adds value to AIM companies and the market as a whole.

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Q. We are already traded on another major market. Do we need to produce an admissions document?

A. Companies who are being traded on certain markets (known as AIM Designated Markets) for at least 18 months may be eligible to use a simplified admission route to AIM and may not need to produce an AIM Admission Document.

The AIM Designated Markets comprise the main boards of the Australian Stock Exchange, Euronext, Deutsche Borse, Johannesburg Stock Exchange, Nasdaq, NYSE, Stockholmsborsen, Swiss Exchange, Toronto Stock Exchange.

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Q. I've heard a floating on a stock market can mean a lot of paperwork. Is that true of AIM?

A. Once a company has been admitted, the AIM rules do not require it to produce further documentation or to consult its shareholders, unless it is undertaking a reverse takeover. Though in certain circumstances companies may have wider legal or other regulatory obligations, this makes AIM an especially efficient market for aquisitive companies. Whilst an AIM company is required to announce any matter which may affect its share price, the AIM rules do not require formal quarterly reporting though companies are free to issue quarterly reports of they so wish.

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Q. We're not based in the UK, is that a problem if we want to be on AIM?

A. Not at all. AIM is particularly flexible for overseas companies. You do not need to be incorporated in the United Kingdom, you can trade your shares in any freely available currency. You can produce or reconcile your accounts to International Finance Reporting Standards, UK GAAP or US GAAP. And you do not have to re-state any historic accounts.

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Q. We like to do things our way. Will being an AIM company mean doing things differently?
A. Being an AIM company doesn't alter management's right to manage. But, you will be subject to increased scrutiny by the market and the media. In general, the board must be prepared for greater exposure and openness, in terms of the company's finances and business strategy.

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Q. What are the fees for joining AIM?

A.For both UK and International companies there is a flat joining fee that the Exchange charges of £4,000.

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Q. How much would an overall AIM flotation cost?

A. This depends on the type of transaction. Generally a flotation will cost 7-10% of capital raised in terms of adviser fees etc.
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