Western Australian tech company QRSciences has been penalised $33,000 by the Australian Securities and Investments Commission after an alleged failure to disclose information to the Australian Stock Exchange.
Western Australian tech company QRSciences has been penalised $33,000 by the Australian Securities and Investments Commission after an alleged failure to disclose information to the Australian Stock Exchange.
ASIC's executive director of enforcement Jan Redfern said the Cannington-based company had incurred the infringement under the Corporations Act 2001, which requires companies to immediately disclose materially price-sensitive information to the market, so it can be provided to investors.
Specifically the ASIC penalty alleged that QRS contravened the Act between January 31 and February 7, 2005 by failing to notify the ASX about the withdrawal of Ord Minnett from its commitment, given in January 2005, to underwrite any shortfall in the exercise of the company's options - up to a total of 9,000,000 shares valued at $1,800,000.
The issue of the notice is the second use of the new provisions in the Act designed to deal with less serious infringements of the continuous disclosure obligations.
QRSciences have complied with the notice, but as is set down in the Act, compliance with the notice is not an admission of guilt or liability, and QRS is not regarded as having contravened the Act.
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ASIC DISCLOSURE PENALTY FOR PERTH COMPANY
QRSciences Holdings Limited has paid a $33,000 penalty after an investigation by the Australian Securities and Investments Commission (ASIC) into an alleged failure to disclose information to the Australian Stock Exchange (ASX).
ASIC's Executive Director of Enforcement, Jan Redfern said the publicly listed company had paid the penalty to comply with an infringement notice issued by ASIC on 20 December 2005 (the notice) alleging that QRS had failed to disclose information to the ASX as required under the Corporations Act 2001 (the Act).
Under the Act, companies that do not immediately disclose materially price-sensitive information to the market operator, so that it can be provided to investors, breach their continuous disclosure obligations.
The issue of the notice and the payment of the penalty by QRS, a Perth-based company, is the second use of the new provisions in the Act designed to deal with less serious infringements of the continuous disclosure obligations.
ASIC issued the notice because it believed that QRS had contravened the Act between 31 January and 7 February 2005 by failing to notify the ASX about the withdrawal by Ord Minnett Limited from its commitment, given on or about 12 January 2005, to underwrite any shortfall in the exercise of QRS options up to a total of 9,000,000 shares valued at $1,800,000.
'It is important that companies comply with their responsibilities, under the Corporations Act, to ensure the market is adequately informed . The onus on a company to fulfil its continuous disclosure obligations is fundamental to ensuring market transparency', Ms Redfern said.
QRS elected to comply with the notice. As provided under the Act, compliance with the notice is not an admission of guilt or liability, and QRS is not regarded as having contravened section 674(2) of the Act.
An extract of the notice is attached to this document.
Further information about ASIC's administration of infringement notices is available from the ASIC website at www.asic.gov.au/clerp9 and look under 'continuous disclosure'.
For further information contact:
Jan Redfern
Executive Director, Enforcement
Telephone: 02 9911 2191
Mobile: 0411 119 210
Danielle Huck
ASIC Media Unit
Telephone: 03 9280 3407
Mobile: 0417 540 769
