RNS issued today announced director buys yesterday.
Robert Terry, Chairman and Group Chief Executive, bought 1m shares at 8p (£80k)
Laurence Moorse, Group Finance Director, bought 250k shares at 8p (£20k)
The board originally said that they would not be able to buy shares until 17 May, due to the fact that th company was in a closed period. The RNS states that they have been advised that they were no longer in a closed period and that permission had been received to make the purchases.
Solicitors, Swan Turton, who are unconnected with this, have a webpage with clarifies the AIM close period rule (emphasis added):
“Close period” is generally the period of two months prior to publication of the company’s annual results.
AIM Regulation has commented that directors’ dealings are sometimes taking place ahead of the publication of annual accounts, with the practice of some companies following the assumption that the two month close period ends on the publication of preliminary results. However, not all preliminary results contain the key information that would be submitted in the annual accounts.
AIM Regulation has confirmed that a close period is interpreted as being the two months preceding the publication of annual accounts in accordance with Rule 19, namely when the annual audited accounts are published and sent to shareholders without delay. Alternatively, under Rule 26, if a company follows the electronic communication provisions and publishes its annual accounts on its website then, provided this fact and the key information relating to those accounts have been notified to the market, a Nomad can consider the close period to be ended.
Dealings before then, including after publication of the preliminary results, will only be permitted if a company’s Nomad obtains a derogation from AIM Regulation. In the case of preliminary results being published, although the AIM rules do not require particular information to be contained in the preliminary results, it is expected that a derogation will only be granted where the preliminary results contain all the information necessary to enable investors to form a full understanding of the company’s financial position, including its assets and liabilities.
This is interesting, because it seems that the directors are “pushing the envelope” on this one.
I assume that the shares will go up today, at least partly due to the director purchases. Some posters have referred to the purchases as only token, though.