Meanwhile back at the ranch and when you think it couldn't possibly get any worse, the regulators make an appearance...
http://asic.gov.au/about-asic/media...ources-for-disclosure-and-reporting-failures/
Wednesday 21 January 2015
15-007MR ASIC acts against Pluton Resources for disclosure and reporting failures
ASIC has acted to restrict Perth-based Pluton Resources Limited (Receivers and managers appointed) (Pluton) from issuing a reduced content prospectus until 15 January 2016.
ASIC’s decision means Pluton will not be able to rely on reduced disclosure rules if they want to raise funds from investors using a prospectus. The decision follows concerns that Pluton failed to comply with its continuous disclosure obligations and various reporting requirements.
In particular, ASIC found that Pluton failed to lodge its Annual Financial Report for 2014 with ASIC by 30 September 2014 and failed to report to its members (via an Annual General Meeting) by 31 October 2014.
ASIC also found that between 28 January 2014 and 22 April 2014, Pluton failed to disclose the terms of a Convertible Securities Agreement with YA Global Masters SPV Ltd, entered into on or by 28 January 2014, until the release of an announcement to the market entitled ‘Prospectus for Entitlements Issue’ on 22 April 2014. This information was information that was required to be disclosed under ASX Listing Rule 3.1.
ASIC Commissioner John Price said, ‘Current and potential future shareholders in a company need to be in an informed position to assess a company’s prospects and its financial position.
‘In appropriate cases, ASIC will act against companies that fail to meet their reporting and disclosure obligations to ensure all material information is made available in future fundraisings.’
ASIC’s action follows a referral from the Australian Securities Exchange.
Background
Section 713 of theCorporations Act allows a company, in certain circumstances, to issue securities using a reduced content prospectus instead of a full prospectus. ASIC has the power to prevent a company from relying on these rules if they breach disclosure obligations and/or other reporting obligations, designed to ensure material information is provided to investors on a continuous basis.
