ASIC recently placed an interim stop order on an entitlement offer (Offer) made under a prospectus lodged with ASIC on 27 June 2024 (Prospectus) by Rhinomed Limited (Rhinomed).
ASIC was concerned that the Prospectus did not adequately disclose all the required information under section 710 of the Corporations Act, including, but not limited to:
- historical financial information
- existing loan arrangements
- the use of funds raised under the Offer, and
- plans to pay current liabilities and fund operations following the Offer.
On 24 July 2024, ASIC revoked the interim stop order following a replacement prospectus being lodged which addressed ASIC’s concerns.
Background
Where ASIC has concerns that a prospectus does not meet relevant disclosure requirements under the Act, it may issue an interim stop order that no offer or issue of securities be made while the order is in force. Where ASIC’s concerns are promptly satisfied, ASIC may revoke the interim stop order to allow the offer to proceed.
