ASIC imposes stricter conditions on Padbury in light of disclosure breaches
PERTH (miningweekly.com) – The Australian Securities and Investment Commission (ASIC) has imposed restrictions on ASX-listed Padbury Mining following a bungled funding deal for the Oakajee port and rail project, in Western Australia.
In April this year, Padbury announced that it had secured $6-billion from an unnamed private Australian equity investor to fund the construction of the Oakajee port and rail project. It was later revealed that Sydney entrepreneur Roland Frank Bleyer was the source of the funding, through Alliance Super Holdings and its parent company Superkite.
The funding deal was axed in May, after ASIC launched an investigation into the transaction.
In its findings, ASIC said that Padbury had breached its continuous disclosure obligations by failing to disclose that the company was required to arrange for a bank to issue a demand guarantee to Superkite for $S94-million before it could gain access to the funding.
“A company’s ability to use reduced disclosure rules is predicated upon them meeting their ongoing disclosure obligations. If this doesn’t happen, ASIC will intervene so that current and potential future shareholders are in a better position to assess a company’s prospects and financial position,” ASIC commissioner John Price said.
ASIC has now restricted Padbury from issuing a reduced content prospectus until May 1, 2015.
This meant that the company would be required to issue a full prospectus for any capital raising, rather than being able to use a short form prospectus under the Corporations Act.
ASIC’s broader investigation into issues relating to Padbury is ongoing and the commission said it had no further comment on the investigation at this stage.
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