citrus turns sour

News report for info...(I did trade CTF during the HIV claims)..and the product may still be OK but not for those ambitious claims.

Firm slammed for HIV block claim



September 5, 2007 - 5:21PM THE AGE

The corporations watchdog has obtained orders in the Federal Court declaring that a company that claimed to have found a way to stop the spread of human immunodeficiency virus (HIV) engaged in misleading conduct.

The orders against sanitation solutions company Citrofresh International Ltd relate to breaches of the Corporations Act and follow court action by the Australian Securities and Investments Commission (ASIC) against the company and former managing director Ravi Narain.

The action followed statements by the company to the Australian stock exchange in September 2005, falsely claiming that it had a product that could stop the spread of HIV.

The claims were widely reported and resulted in its shares surging more than 160 per cent and at one point hitting 70 cents.

The stock fell when Citrofresh later retracted its claim.

It was trading today around 3.5 cents.

Citrofresh had claimed the product was a non-hazardous, non-toxic way of deal with emergency disease control and preventing HIV, human influenza A virus, SARS and human rhinovirus.

It also claimed it would market a range of barrier protection products for men - a post-intercourse spray or lotion - that would act as an 'invisible condom', reducing the transmission of HIV and sexually transmitted diseases.

ASIC also alleged that Mr Narain engaged in misleading or deceptive conduct and failed to exercise his duties as a director with a reasonable degree of care and diligence regarding the announcements.

The Federal Court reserved judgment in ASIC's claim against Mr Narain, who resigned as managing director and as a director of Citrofresh in June.

He was replaced by former Symex Holdings Ltd boss Michael Newton.

Citrofresh consented to the court order and will pay ASIC's legal costs.