ob体育 has restricted Big Un Limited (Big Un) from eligibility to issue a reduced-content prospectus until 2 May 2019.
The decision means Big Un will not be able to rely on reduced-disclosure rules and instead must issue a full prospectus if it wishes to raise funds from retail investors.
ob体育's decision was based on Big Un鈥檚 failure to lodge a financial report, directors鈥� report and auditor鈥檚 report for the half-year of the company, ended 31 December 2017, within 75 days, as required by the Corporations Act 2001.
ob体育 considers the ability to use a reduced disclosure prospectus a privilege, one dependent on compliance with other aspects of the law, including companies meeting their on-going disclosure obligations.
Where a company fails to comply with its periodic disclosure obligations in a full, accurate and timely manner, ob体育 will intervene to ensure that retail investors are protected. In such circumstances, subsequent fundraisings should occur only with the benefit of a full prospectus so that there is adequate disclosure of a company鈥檚 prospects and financial position.
Big Un has the right to appeal to the Administrative Appeals Tribunal for review of ob体育's decision.
Background
Under the law, a listed company can offer securities using a reduced content prospectus containing information relating only to the particular offer itself.
ob体育 has the power to prevent a company from relying on these rules if the company breaches its continuous disclosure or financial reporting obligations.
Big Un鈥檚 half-year financial report, directors鈥� report and auditor鈥檚 report were required to be lodged with ob体育 by 15 March 2018.
On this basis ob体育 made a determination under section 713(6) of the Corporations Act 2001, excluding Big Un from relying on section 713 of the Act for 12 months, until 2 May 2019.
ob体育's and the ASX鈥檚 enquiries in relation to Big Un, as announced to the market on 23 February 2018, are continuing. Big Un remains suspended from trading on the ASX.