Also noticed this one from a while ago. It makes you wonder how this can be allowed to happen?
Doesn't it matter if you mislead the market as long as you pay ASIC off? They are not there to be paid like this surely??? I can't believe that this can happen.
------------------------Article:
Chemeq will pay up to $1.2m plus costs to settle ASIC dispute
Friday, 30 June 2006
CHEMEQ has reached a settlement with the Australian Securities & Investments Commission over its claims that Chemeq contravened continuous disclosure requirements.
ASIC initially launched proceedings against Chemeq in December 2004 claiming seven breaches of the continuous disclosure requirements had taken place between February 2003 and October 2004. The claims related to the company's sales contracts, the increasing costs of constructing the company's Rockingham manufacturing facility, its funding position and the granting of a US patent extension for its antimicrobial product.
As a result of the settlement, Chemeq will pay an amount to be determined by the Federal Court, as well as contributing $A170,000 toward legal costs incurred by ASIC. The company will also acknowledge two contraventions of the continuous disclosure requirements.
In return, ASIC will withdraw all claims against Chemeq and its directors, officers, agents and employees, both past and present.
Chemeq CEO David Williams said the settlement was reached to avoid a long and costly trial.
"The board and new senior management team can now direct all effort towards the company's commercialisation strategy," he said in a statement.
The combined maximum penalty for the breaches is $1.2 million. At the end of March, the company had $35 million in cash.
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