AIM Italia - Ernesto Mocci - Methorios Capital

AIM Italia & MAC MTF’s‣ To date the listingsi of companies on AIM Italia tend to be aform of public placement to institutionsi i and individuals id thatwere already involved or close to the company. In reality Borsa Italiana has created a public market for private investors.‣ Borsa Italiana, together with the Associazione Bancaria Italiana (ABI) recently launched a € 1 billion lending program tosupport exchange listings. Over the next three years, SME companies that list in Italy will be eligible for loans on a “fasttrack” basis for up to twice the amount of the public subscription at thetimeof IPO,increasing access to the funds neededto support growth.‣ The incentive for companies listing on both AIM Italia and MAC does not appear to be a problem. The tightening of creditmarkets for smaller companies make equity capital markets a more attractive source of capital for companies seeking growth.However it is more an issue of attracting investor interest.‣ One possible solution for attracting investment to the markets could be in the form of tax benefits to both individualinvestors and corporate investors. This is a scheme which is already present for local investors in the Aim UK markets withvarious forms of incentives, such as for:• UK based Individual investors:• Gift relief on capital gains tax;• Enterprise investment schemes: 20% on gross investment for investments over adurationof 3years. Applicableinvestment size is capped at £500,000;• Inheritance tax relief;• Relief for losses: the potential for investors to recoup losses against capital gains taxes paid on other investments.• Venture Capital Trusts (VCT’s): individuals who invest in HM Revenue approved VCT’s can receive exemptionfrom dividend tax, capital gains (when selling VCT shares) and an income tax credit of 30% of total VCTinvestment (capped at £200,000).• UK based Institutional investors:• Corporate Venturing Schemes: corporate tax relief of 20% of investment for investments over 3 years in Aim listedcompanies.21