A proposed acquisition of tech entrepreneur Justin Miller’s company, Nuheara, by Wild Acre Metals has hit a major roadblock after concerns were raised by the corporate watchdog.
Following the receipt of an interim stop order by the Australian Securities and Investments Commission, Wild Acre has withdrawn its prospectus and will return all funds received to applicants.
The watchdog issued to stop order after raising concerns about Nuheara’s ‘intelligent ear-bud technology’ and its viability.
“Asic was concerned that Wild Acre’s disclosure in the prospectus, the investor presentation and Nuheara’s promotional materials made available on the internet did not disclose reasonable grounds that the earbuds with the described specifications could be produced at all or within the indicated timeframes and sold at a profit for the stated price,” Wild Acre said in a statement.
“Therefore at this stage the company is unable to disclose reasonable grounds for the product specifications, product pricing and product availability timeframes.”
Wild Acre has resolved to retract previous statements it has made, including the prospectus and investor presentation.
But the company said it remained committed to completing the reverse takeover, with revised terms currently being negotiated, and intends to release a new prospectus once Nuheara has developed a functioning wearable prototype.
“Over the coming months, Nuheara will continue to develop the technology with the goal of transitioning from a functioning desktop prototype to a functioning wearable earbud prototype,” Wild Acre said.
Wild Acre shares will remain suspended from trade until it can re-comply with ASX listing rules.