Stockholm Stock Exchange warns FlyMe
FlyMe Europe AB handled its information-disclosure activities in a
manner that contravened First North's rules when the company announced a
business transaction in such a way that it seemed to be signed and
sealed, despite this not being the case. Accordingly, the Stockholm
Stock Exchange has decided to warn the company.
FlyMe Europe AB's (FlyMe's) shares are traded on First North, the
Stockholm Stock Exchange's alternative marketplace. According to First
North's regulations, information disclosed by a company must be correct,
relevant and reliable, and no information may be omitted that could
influence assessments of the company.
On September 1, 2006, FlyMe issued a press release with the headline
"FlyMe purchases British airline Astraeus". FlyMe stated in the release
that its investment in the share acquisition amounted to GBP 6 M. The
release did not contain any information to the effect that certain
conditions had to be met.
On September 25, 2006, FlyMe issued a press release with the headline
"FlyMe concludes new agreement with UK airline Astraeus." It was stated
in this release that FlyMe and Astraeus had mutually agreed not to
proceed with the previously announced transfer of 51 percent of
Astraeus' shares to FlyMe. The release did not give any reasons for the
abandonment of the deal.
FlyMe subsequently reported in a press release dated September 29 that
one of the conditions for the canceled transaction had been the granting
of permission for the deal by the British Civil Aviation Authority (CAA)
within a certain time period. The release went on to say that, when
permission from the CAA was not received within the stated time period,
the parties had agreed not to seek an extension of the period for
granting approval. Accordingly, the purchase agreement had been annulled
and the two airlines had instead entered into a "dry leasing" agreement.
In the press release that FlyMe issued on September 1, the company
should at least have stated that the agreement was subject to the CAA
approval, since this information was essential to the market's
assessment of the transaction. But this was not the case, and nor did
FlyMe give any reasons for the cancellation of the deal in its press
release of September 25. This infraction is deemed particularly serious
in view of the first press release being formulated so as to indicate
that the transaction had been finalized.
This means that FlyMe has failed to handle its information-disclosure
activities in the manner stipulated in First North's regulations and,
accordingly, the Stockholm Stock Exchange has warned FlyMe. The
Stockholm Stock Exchange did not find any grounds to direct any
criticism at Remium AB, FlyMe's Certified Advisor at First North.
For more information regarding First North, please visit
www.omxgroup.com/firstnorth
For more information, please contact
Ulrika Areskog, Communications Manager, Stockholm Stock Exchange, tel.
+46 8-405 63 76
About OMX
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Exchange, OMX offers access to approximately 80 percent of the Nordic
and Baltic securities market. The Nordic Exchange is a term used for
marketing purposes and is not a legal entity. It describes the common
offering from the Helsinki Stock Exchange, Copenhagen Stock Exchange,
Stockholm Stock Exchange, Tallinn Stock Exchange, Riga Stock Exchange
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Exchange. For more information, please visit www.omxgroup.com
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