Austpac Federal Court Application - whats it all about, page-3

Captsua
Thanks for your answer. It put me on the right track to understanding about 708A notices ('cleansing notices').

This is how I understand it works.
If a company wishes to raise funds (without going to the cost and effort of issuing a prospectus) - it can do a placement to investors who meet certain conditions eg sophisticated investors.

At the time of this placement (issuing of shares) to these investors - it can be done without informing ( 'without disclosure') the market or company shareholders about the issue.

As a protection to the unknowing company shareholders - the recipients of these issued without disclosure shares, are prohibited from selling these shares for 12 months from issue, until there has been disclosure to market.

This disclosure to the market is called a 'cleansing notice' - and takes the form of a 708A Notice, sent from the company to the ASX.

Once the company has informed the market/shareholders about the issue of these new shares with the 708A Notice - these placement shares can be sold.

Wilcox

PS. I can remember that APG company secretary did send 708A Notices to the ASX - so what is the problem that requires granting of relief by the Federal Court ????