ASIC places restrictions on Holista CollTech following continuous disclosure failures

ASIC has restricted Holista CollTech Limited (Holista CollTech) from eligibility to issue a reduced-content prospectus, and to use exemptions for reduced disclosure in fundraising documents until 17 October 2021 (reduced disclosure).

ASIC’s decision was based on Holista CollTech’s failure to disclose to the market that:

• on or about 29 June 2020, Holista was aware of updated expected revenue from the sale of Natshield of $0.5 million, having announced expected revenue from orders of Natshield of $3.8 million on 9 April 2020 (the Updated Expected Sales Revenue). The Updated Expected Sales Revenue was announced on 9 July 2020; and
• testing of the efficacy of Path-Away was being undertaken on a surrogate of COVID-19, being the feline coronavirus, and not COVID-19 itself, as it had informed the market.

ASIC considers the privilege for a company to use reduced disclosure to be dependant on its compliance with its continuous disclosure obligations under the corporations legislation. ASIC found that Holista CollTech’s continuous disclosure breaches occurred at a time when the market was affected by the ongoing uncertainty of the global pandemic, and that the impact of those breaches was compounded due to several other statements being made during the same period that were later retracted by the company.

ASIC’s investigation into Holista CollTech’s conduct is ongoing.

Holista CollTech has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-250mr-asic-places-restrictions-on-holista-colltech-following-continuous-disclosure-failures/