p1 interim stop order, page-13

Anyone see this today ?
http://www.theaustralian.com.au/business/companies/start-up-restrained-as-asic-investigates/story-fn91v9q3-1226531629157

Start-up restrained as ASIC investigates

THE corporate watchdog has slapped a temporary fundraising ban on Priority One Network Group as it seeks further information from the start-up company regarding its $320 million sharemarket ambitions.



The Australian Securities and Investments Commission issued an interim stop order in regard to the company's prospectus on Wednesday, following an earlier extension to its exposure period.

Priority One chief operating officer Chris Grant-Foster said: "We are working with ASIC on a few points and continue to do so."

As revealed in The Weekend Australian on December 1, the company is attempting to raise up to $18m from investors to launch a global loyalty scheme for debit card holders.

Recent months have seen the company, which was registered in March 2011 with paid-up capital of just $8, undertake more than a dozen seemingly unrelated acquisitions, including an internet beauty competition, a proposed arena show about dragons and Trust bar in Melbourne's financial district, through the issue of close to 400 million shares.


Two of those acquisitions -- a shopping website under development and a proposed social networking website -- are associated with businessman Richard Trainer, an undischarged bankrupt banned from acting as a company director until September 2013.

It has since emerged that Priority One is also linked to another disgraced businessman, former property developer Phillippe Barros, who was disqualified by ASIC in 2008 from managing corporations for five years as a result of his roles in three failed companies.

The Australian understands Mr Barros has attended meetings with prospective investors on behalf of Priority One.

Corporate records show that his wife, Leonie Noonan, owns a company called Centurion Capital, which appears to be linked to one of Priority One's founding investors, Centurion Securities and Investment Services. Both companies are registered to the same Toorak, Melbourne address.

Mr Grant-Foster did not respond to questions about Mr Barros's involvement.

According to ASIC filings, Centurion Securities Investment Services is the subject of a current wind-up bid. The company owns one-third of Beez Investments, which has loaned Priority One $1.4m by the way of several convertible note agreements.

The company plans to repay Beez Investments with funds raised under the initial public offer. Priority One hopes to list on the Australian Securities Exchange early next year.