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Helping companies raise liquidity

Berg Kaprow Lewis recently joined Sharemark’s Advisers’ Network, to provide our clients with the very best advice about joining an alternative stock market and how it can help companies raise liquidity.

A real alternative
Over the past decade, the alternative share-trading platform, Sharemark, has been helping small businesses raise liquidity by providing a stock market specifically designed to meet their needs.

As an alternative stock market, Sharemark is ideal for companies with a large number of shareholders or consumer-facing businesses that would like to trade shares without incurring the cost associated with a primary market listing. Low admission fees and inexpensive ongoing costs mean companies can save considerable expenses by choosing Sharemark over markets like AIM or PLUS.

Sharemark provides companies with a simple way for their investors to deal shares too, by using a fair and transparent pricing mechanism. Instead of relying on bid-offer spreads, shares are traded at a single price – bought and sold at auctions which take place at a time that suits shareholders.

Sharemark also offers unbeatable flexibility in allowing companies to trade in a closed market or dual trade. By dual trading on Sharemark (with AIM or PLUS), companies can raise their profile further, they can increase liquidity, and they can broaden their shareholder base.

Companies can choose to trade their shares on an open market, where anyone can buy shares; a closed market, where only a specific group of people such as employees can buy shares; or a monitored market, where anyone can buy shares subject to the company’s directors having the right to refuse the transfer, for example to prevent shares falling in the hands of competitors.

Ongoing compliance is also fairly straightforward. Significantly, accounts can continue to be prepared in accordance with UK GAAP as opposed to having to adopt international accounting standards.

The best advice
Before joining an alternative trading platform like Sharemark, companies will need both legal and corporate finance advice.

Sharemark relies on its growing Advisers’ Network to advise companies who may be considering joining a stock market and indeed those already trading who may be in need of an expert view. Having recently joined Sharemark’s Advisers’ Network, we are ideally placed to provide applicant companies with the expert help they need.

For more information on Sharemark and the benefits of seeking a listing, please get in touch with your usual contact partner or use our enquiry form.

Daniel Shear
Corporate Finance Partner

Daniel Shear

Partner, Corporate Finance

T +44 (0)20 8922 9321
E daniel.shear@bkl.co.uk

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