@Scarpa not sure where we disagree here. I also think they should put forward looking statements into the prospectus.
What I was referring to was how putting those types of forward looking statements is not a requirement for a prospectus. I read one from a cannabis company last week where there were no forward looking statements at all. The prospectus pretty much said nothing, so I have no idea why anyone would be interested.
(Also notice how the asx statement did not mention 'lack of prospective financial information' as a reason for rejection.)
It would be possible for WFE to be within the rules, include the valuation of the plant (METS report), AHIC books to IFRS standards, an offtake agreement but no numbers showing any expected profitability, and meet the legal requirements.
It would just be a bit ordinary IMHO without showing IE reports and potential based on realistic numbers.
From here in the guide for prospectuses ...........
"If you cannot include detailed prospective financial information you must still provide investors with disclosure on your prospects: see RG 170.20–RG 170.22 for examples of information that may satisfy this disclosure requirement."
https://download.asic.gov.au/media/4062323/rg228-published-3-november-2016.pdfRG 170.20-22....."If prospective financial information is not included in a disclosure document or PDS, there must still be adequate disclosure about the benefits and risks of the financial product. If prospective financial information has not been included because there are no reasonable grounds for it, an issuer should consider inserting a statement to that effect.
RG 170.21 If there are no reasonable grounds to set out prospective financial information, disclosure may still be needed on certain matters to meet the requirements of the Corporations Act. The Corporations Act and Corporations Regulations require disclosure about: (a) the issuer’s prospects (s710); (b) the significant benefits of a product and the way in which the benefits will or may be provided (for products other than margin loans, superannuation and simple managed investment schemes) (s1013D(1)(b)); (c) the significant features and significant benefits of a superannuation product or simple managed investment scheme (Schs 10D and 10E, respectively, of the Corporations Regulations); and (d) the key or other benefits available to the borrower or potential borrower of a margin loan (Sch 10C of the Corporations Regulations). REGULATORY GUIDE 170: Prospective financial information © Australian Securities and Investments Commission April 2011 Page 10
RG 170.22 What is sufficient to meet these disclosure requirements must be judged in the context of each case. However, some examples include: (a) historical information about the product, such as yield or price (making sure that investors will not think it is a guarantee of future performance); (b) risks (e.g. historically, the factors that have an impact on the key areas of yield and price, and the experience of the directors); (c) anticipated acquisitions; (d) product development and market share; and (e) the kinds of matters discussed in Regulatory Guide 70 Prospectuses for cash box and investment companies (RG 70)."
https://download.asic.gov.au/media/1240943/rg170-010411.pdfBasically you can get around putting in prospective financial statements, but your prospectus ends up saying nothing much, (which I have read some in the past).
If the prospectus does not say anything much, then how on earth is it going to be taken up by investors??
I agree with you that this venture needs these IE expert reports to include prospective financial information, just to have a chance of success.
It will take time and money to get these IE reports. I do not know where WFE will get the cash from to commission these reports, nor do I understand why they were not started months ago. (according to latest update, still none commissioned)