The Pre-emption Group has confirmed that the additional flexibility under the Pre-emption Group Guidelines, which was introduced on a temporary basis in light of the Covid-19 pandemic, will end on 30 November 2020.
In April 2020, the Pre-emption Group announced that it was recommending that investors consider supporting placings by companies of up to 20% of their issued share capital over a 12-month period. The relaxation was initially scheduled to end on 30 September 2020 but was then extended to 30 November 2020 (see our corporate update 2020/17).
The Pre-Emption Group says that, whilst considerable uncertainty remains, companies have had eight months to assess their situation and respond accordingly, and so its full Statement of Principles will apply from 1 December 2020. It stresses that non-pre-emptive issues should only be undertaken following effective consultation and encourages issuers to look at its statements in April 2020 and September 2020 for guidance on what constitutes effective consultation.
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