alert: asic investigation underway

ASIC to look at Citrofresh trades
By Kevin Andrusiak
08oct05

THE Australian Securities and Investments Commission has revealed it will look into share trades by two directors of biotech junior Citrofresh.

Both sold big parcels of stock after the share price in the Geelong-based company more than tripled on September 27.

Only hours before the sale Citrofresh had lodged an announcement with the Australian Stock Exchange that it had invented a compound which could prevent the spread of deadly viruses like HIV.

The announcement caused heavy bidding in Citrofresh stock, and in hours the share price raced to 70c from a starting point of 22c.

It also prompted a query from the ASX on whether the company's orange peel-based spray was a cure or a vaccine.

The day after the, share sales Citrofresh told the ASX the product was neither a vaccine nor a cure. That prompted a heavy sell-off by the market and a big retreat in the share price.

This week non-executive director Mathew Walker and non-executive chairman Ron Gajewski announced they had sold Citrofresh shares on the same day as the initial announcement.

Citrofresh said late last night it had initially got the date of the sales wrong, confirming they were made on September 27 and not September 30 as previously indicated to the ASX.

In the transactions, Mr Walker sold a million shares and pocketed $577,000. A company associated with Mr Gajewski, Vienna Holdings, sold 430,880 shares at 56.16c each for $241,977.

Mr Walker is the founder of Perth investment bank Delta Capital. Neither he nor Mr Gajewski could be contacted for comment. ASIC said yesterday inquiries had been launched into the transactions.

Citrofresh closed yesterday 1c higher at 31c