Shareholders were informed on 15 March 2016, that we had signed an agreement with Thames Water for the deployment of Envirosuite at 2 key sites. The agreement was for 1 year, with an option to extend both the term and number of client sites. A year has now passed but still no announcement has been made eventhough this agreement is very material to the future success of the company.
I hope the directors aren't treating EVS like a private company again and realise that as a public company, the directors have a duty to provide continuous disclosure of information to its Shareholders where it is material and includes but is not limited to the following :
- a transaction that will lead to a significant change in the nature or scale of the entity’s activities;
- the entry into, variation or termination of a material agreement
As per the ASX website, compliance with Continuous Disclosure Listing Rule 3.1 is critical to the integrity and efficiency of the ASX market and other markets that trade in ASX quoted securities or derivatives of those securities. Reflecting this, Parliament has given the rule statutory force in section 674 of the Corporations Act.
If a listed entity breaches Listing Rule 3.1, it may also breach section 674(2). This is both a CRIMINAL OFFENSE and a financial services civil penalty provision, punishable in the former case by A FINE OF UP TO $110,000 and in the latter case by a CIVIL PENALTY OF UP TO $1,000,000. Alternatively, if ASIC has reasonable grounds to suspect a breach it may, by administrative action, issue an infringement notice imposing a penalty of up to $100,000. The entity may also be liable to pay damages to any person who suffers loss or damage as a result of the breach.
An officer who is involved in such a breach may infringe section 674(2A) of the Corporations Act. This is a civil penalty provision punishable by a PENALTY OF UP TO $200,000. The officer may also be LIABLE TO PAY DAMAGES to anyone who suffers loss or damage as a result of the breach.
The share price has been dropping quite consistently over the last few weeks leading to the end of the Thames Water contract. Are some shareholders privy to insider info that has not been announced in a timely manner?
If the directors are already aware of the status of our contract with Thames Water, they need to disclose it immediately. I hope the directors realise that the requirement for continuous disclosure is not just for positive developments but for negative ones as well so shareholders can make informed decisions.
EVS Price at posting:
4.4¢ Sentiment: Hold Disclosure: Held
