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Mr John Andrew (Gus) Simpson, the Executive Chairman of listed company Olea Australis Limited (Olea Australis), today appeared in the Perth Court of Petty Sessions following an investigation by the Australian Securities and Investments Commission (ASIC).

Mr Simpson, of Cottesloe in Western Australia, was charged with one count of providing false information in a prospectus issued by Olea Australis on 9 March 2000.

ASIC alleges that Mr Simpson knew, or ought reasonably to have known that the information was false, and that it was likely to induce other persons to subscribe for securities.

It is alleged the prospectus included comments by an independent olive expert, that the olive tree yields in the prospectus were realistic and likely to be achieved.

ASIC alleges that Mr Simpson was aware that the information relating to olive tree yields, which appeared in the prospectus, was not the same information approved for inclusion in the prospectus by the independent olive expert.

Mr Simpson was not required to plead and was bailed to his own personal undertaking.

The matter was adjourned until the 20 September 2004 for plea.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Background

The prospectus offered investors the opportunity to participate in an olive growing and processing project at Dandaragan in Western Australia. Investors could lease one or more Olive Groves of 0.2 hectares each, through a 20 year lease and management agreement. The subscription amount for one olive grove was $10,247.00. In addition, for each olive grove investors were required to also subscribe for 5,000 shares at $0.20 per share in Olea Australis.

Olea Australis was listed on the Australian Stock Exchange on 26 June 2000 and is the ultimate holding company of Dandaragan Olives Management Limited (DOM). DOM is the responsible entity accountable for managing the affairs of the Olea Australis Project.





I don't want to open old wounds and YES i know that the case was not pursued. But it still raises issues. I believe in this company i think it has good fundamentals and could go somewhere. But its alarming when you look at Gus's previous companies. :/