Five cash shells for the adventurous

Investing in cash shells can be risky but new regulations are also creating an opportunity for the adventurous. Here are five that might be worth a look.

A rule change by the London Stock Exchange on cash shells that they must either do a deal before 1 April or have cash in excess of £3m to avoid being suspended has thrust these shadowy vehicles into the limelight as never before, says Russ Mould in Shares. But this has also created an opportunity.

Historically, cash shells have been a time and money-saving device for firms looking to list quickly. They also come with established (often experienced) boards, cash resources and good contacts with institutional investors. This means they tend to come at a premium (the 83 cash shells on the official list have a combined market cap of £380m, for example, but only £134m in cash).

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Charlie Gibson

Charles has previously written for the MoneyWeek, giving readers his share tips regularly and covering other topics on the side such as stock markets and the economy. He has also written for The Business, Shares, Investors Chronicle and The Evening Standard, and Charles has presented on LBC and been a guest on BBC One and BBC World. Aside from his journalist background, Charles graduated as a chemist from the University of Oxford specialising in ligand gated ion channels.