CGB 0.00% 2.1¢ cann global limited

2016 10 cent Prediction, page-84

  1. 298 Posts.
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    ummmmm don't think they can choose whether or not to release assays... there's no way what your suggesting here would be allowable under continuous disclosure if it could materially change the share price IMO. I also don't think it is the case in reality either anyway.

    Here is an example about when assays are required to be release per the ASX Listing Rules guidance note 8. Example H5.

    QUOTE
    An example of a situation where a reasonable person would expect information to be disclosed under Listing Rule 3.1A.3: Example H5: listed exploration company S has been conducting an infill drilling program. The assay results for the first five completed drill holes were very promising. S announced them to the market as soon as they became available and its share price increased by 20% and there was a significant uptick in the traded volume of its shares.

    S has just completed drilling on the next five holes, which are in close proximity to the first five. These drill holes have returned assay results which are far less promising, casting real doubts on the size and economic viability of the deposit.

    One of S’s directors asserts that the information from the latest holes is not sufficient for S to be able to form a view about the market sensitivity of the information and that S needs to drill further holes to have a more complete picture of the size and grade of the deposit before making any further announcement to the market.

    Even if this assertion was correct, S would be expected to make an immediate announcement regarding the latest assay results. In these circumstances, given the significant impact that the original promising assay results had on the market price of its shares and the far less promising results from holes in close proximity , a reasonable person would expect S to make such a disclosure.
    END QUOTE

    Note: the listing rules should be read in it's entirety before relying on any specific examples or excerpts.

    We are talking about drilling that was confirmed as completed back in a July announcement. If the results could materially change the sp I can't see how management could claim that they haven't got it "in a form that is suitable for release." as you suggested to Rona142 IMO.
 
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