When cash shell Harrier Group was booted off AIM on 4 December last year for failing to make an acquisition within the prescribed time limit, it decided to list instead on PLUS. Simon Brickles, chief executive of PLUS Markets, welcomed the group with open arms.

Despite finding a speedy solution to the group’s listing problem (trading commenced within two days of the application) Harrier’s chairman Bob Morton was nevertheless angry about AIM’s decision to tighten the rules governing cash shells in such a heavy-handed way. ‘We were suspended and delisted from AIM for failing to make a stupid acquisition that would destroy shareholders’ funds,’ he says, with justifiable dismay, and feels certain that forcing cash shells to buy in haste to fulfil an arbitrary deadline was a desperate – and unnecessary – fix crafted by short-sighted rule makers.

‘I will only make an acquisition that will enhance shareholder value and I would recommend that [cash shells that are] having difficulty on AIM consider moving to PLUS, where they will be left in peace to find a sensible transaction.’

As for Harrier itself, Morton claims he has identified an acquisition target in the services sector and hopes to have a deal tied up ‘before the end of the year’. Investors willing to back a man whose deal-making is exemplary, could benefit handsomely if everything falls into place.

Award hunts for deals
Another AIM shell now on PLUS is Award International Holdings, chaired by the colourful Leo Knifton, a veteran of many AIM ventures including shells such as Alltrue Investments, which has gone on to acquire corporate finance businesses and Adorian, which is, of course, up against the clock to complete a reverse deal.

Award joined PLUS in July this year. It was originally a holding company for travel businesses, but was delisted from AIM in February 2006 after two of its businesses – Award International and Flexibreaks Travel Services – were liquidated. A creditors’ voluntary arrangement (CVA) was completed in March 2007 following the dissolution of its remaining company, Flexibreaks.

Award raised £146,000 from a share placing ahead of listing on PLUS, and plans to invest in a business in the ‘support services sector with proven management’.

Among the other 25 shells on London’s tertiary market is Metrocapital, a venture chaired by former investment banker Gordon MacLean, who has helped reverse corporate finance business Griffin Group, as well as property investor Braemar, into AIM-listed vehicles over recent times. Metrocapital raised £175,000 on its debut and is seeking targets in the information and communications sector. It is expected that any deals here will be funded primarily through the issue of shares.