Troubled iron ore miner Pluton Resources has been restricted from issuing a reduced content prospectus until next year because it failed to comply with reporting and disclosure obligations, the Australian Securities and Investments Commission says.
The commission said its decision meant Pluton would not able to rely on reduced disclosure rules if the company wanted to raise funds from investors using a prospectus.
“The decision follows concerns that Pluton failed to comply with its continuous disclosure obligations and various reporting requirements,” ASIC said in a statement.
Following a referral from the Australian Securities Exchange, ASIC found that Pluton failed to lodge its annual financial report for 2014 with the commission by the September 30 cut-off date, and also failed to report to its members via an annual general meeting by October 31.
“ASIC also found that between January 28 2014 and April 22 2014, Pluton failed to disclose the terms of a convertible securities agreement with YA Global Masters SPV, entered intoJanuary 28 2014, until the release of an announcement to the market entitled ‘Prospectus for Entitlements Issue’ on April 22 2014,” the commission said.
It was information that was required to be disclosed under certain ASX listing rules.
ASIC commissioner John Price said current and potential future shareholders in a company needed to be in an informed position to assess a company’s prospects and its financial position.
“In appropriate cases, ASIC will act against companies that fail to meet their reporting and disclosure obligations to ensure all material information is made available in future fundraisings,” Mr Price said.
Pluton, led by chairman Paul D'Sylva, fell into administration in November last year, which sparked a battle between creditors over the right to appoint receivers to the company.
It was eventually left in the hands of receivers of KordaMentha, which were appointed by Pluton’s major shareholder General Nice Resources.
