they didn’t suspend because if volatility. They suspended to prevent an uninformed market. After consultation with asic, asx learned that an investigation was underway and the nature of that investigation. The rapid drop and heavy shorting in a very short period of time meant that some folks knew what was going on. So asx suspended.
now asic continues their investigation, asx is looking to see if disclosure and other listing rules were followed, and a court case challenges the whole thing. This will remain in suspension until all three activities are finished and I reckon the asx will finish first. Asic will finish last as whatever they uncover then leads to enforcement actions and whatever challenges are raised there.
this has a long, long way to go. All of these must be resolved:
- Red5
- Zero/low interest loans
- KAB transactions
- financial services requirements for AML and customer verification (ot capital, etc)
- pass through payments for fCorp & co who never used any services following multi-million dollar implementations (dwarfing any other customers implementation fees)
- director relationships with fcorp, etc
- proper awarding of performance shares
- proper accounting of revenue (fCorp again)
And those are just the questions we know asx has asked. We have no idea what asic is looking at. You may think these have all been answered but until the draft or final report from asx is published then we don’t know what they think about it. And even when that’s published, which I reckon won’t be too long, asic and the court case must resolve themselves before trading resumes.
long way to go.
