CMQ 0.00% 8.3¢ chemeq limited

fyi press report

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    ASIC takes legal action against Chemeq
    Source: AAP
    Published: Thursday December 23 2004, 4:00 PM

    Pharmaceuticals company Chemeq is facing legal action from the corporate regulator over alleged failures to comply with continuous disclosure requirements.

    The Australian Securities and Investments Commission has filed proceedings against Chemeq in the Federal Court in Perth alleging contravention of the continuous disclosure requirements of the Corporations Act between February 2003 and October 2004.

    Chemeq shares were placed in a trading halt at 1509 AEDT today.


    In a statement, ASIC said it alleged that Chemeq had failed to inform the market of increased costs setting up its manufacturing plant at East Rockingham in Western Australia from February, 2003 to August, 2004.

    ASIC also alleges that Chemeq failed to inform the market that certain purchase orders from South Africa contained a sunset clause requiring that they be filled by June 30, 2004 and that Chemeq failed to tell the market that the orders would not be met by that time before the due date. advertisement


    The regulator has also alleged that Chemeq failed to inform the market about further funding requirements in the period following the raising of $10 million in a share placement on June 8, 2004, up until August 27.

    And ASIC has also alleged that Chemeq did not inform the market of the granting of a US patent between September 28 and October 6 this year.

    ASIC said it is seeking penalties against Chemeq.

    Contraventions occurring before July 1, 2004, carry a penalty of up to $200,000 and after that date, with the introduction of the CLERP 9 compliance legislation, carry a penalty of $1 million.

    ASIC said it began investigating Chemeq following referrals made by the Australian Stock Exchange.

 
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