$1 Club, page-23404

IOU has only released 2-3 announcements per month recently, mostly relating to partnership signings. Shareholders would have liked some more updates. However if you want a classic example of why ‘fluff’ announcements should be avoided at all costs, take a look at CRO’s recent shemozzle:

• 12 July – Trading halt: “pending the announcement of first contracted revenues (…) with Mastercard and Fresh Supply Co”
• 14 July – Voluntary suspension: “pending the announcement of first trade finance customers (…) with Mastercard and Fresh Supply Co”
• 16 July – Extended voluntary suspension (same reason given as 14 July)
• 21 July – Request for reinstatement of trading: “The Company advises it did not, and does not have, any material information which is announceable under Listing Rule 3.1 (…) ASX Considers, and the Company accepts, that the reasons given by the Company for the trading halt and subsequent voluntary suspension were erroneous. The Company does not have material contracted revenues or confirmed trade finance customers to announce.”

Yes, ASX has recently started cracking down on 'fluff' announcements (I have seen multiple 'aware' queries recently on companies I follow but do not hold), but even so, the above is unbelievably bad.

A good lesson to be learned: no announcements are better than erroneous ones (I think calling it "erroneous" is very generous).