Given RRL’s current short position, the following information is very relevant.
“Activist short selling has affected many Australian companies and made media headlines in recent times. On 1 June 2021, the Australian Securities and Investments Commission (ASIC) issued an information sheet on activist short selling. This contributes to the current public debate on whether there is appropriate regulatory oversight of activist short selling.”
“Activist short selling involves a person taking a short position in a financial product and then publicly disseminating information (e.g. one or more reports) directly or through an agent to negatively impact the price of the product ('short report'). A short report may, for example, criticise an entity's finances, management, public disclosures or future prospects. A short report does not necessarily have to be in the form of a formal report. It could be, for example, a post on a social media platform, blog or online forum. The activist short seller expects the short report to cause the price of the financial product to fall, enabling them to realise a profit.”
One can make his/her own judgment whether ASIC’s information sheet (INFO 225) alone will be effective in encouraging activist short sellers to follow the recommended ‘better practices’.
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