The 7 to 14 day period gives ASIC and the market an opportunity to consider the disclosure document before the commencement of subscriptions for the securities on offer. Where the disclosure document was defective, the market could draw it to the attention of ASIC or aggrieved parties could, if appropriate, seek injunctions preventing the fundraising. (para 8.68)
So, does anyone have anything to inform ASIC of or are we all done and dusted? Or does anyone feel like funding and injunction?
It appears that ASIC or someone would need to take out an injunction against CVI to stop this raise going ahead. Given the amount of money this may take I am 50/50 on whether it would be done by ASIC or not. I think about $30k to get an immediate injunction in the supreme court?
If there is any immediate action from ASIC at this point I suspect this is the extent of it unfortunately. Risky venture though as CVI might well argue that being denied access to raised funds tipped them into voluntary administration, assuming that is the next step in this sordid story.
Action by ASIC of this nature would certainly provide a great and ultimately convenient excuse by CVI directors as to why CVI failed. Kind of similar to the Jodee Rich/Onetel excuse about being denied $132M of capital by Packer & Co and we see how that ended up in the hands of ASIC..............
CVI Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
