ASIC has restricted Regional Express Holdings Limited (REX) from issuing a reduced-content prospectus and using exemptions for reduced disclosure in fundraising documents until 14 December 2021.
The decision means REX will not be able to rely on reduced-disclosure rules and instead must issue a full prospectus in order to raise funds from investors.
ASIC’s decision was based on REX’s failure to disclose to the market that it was considering the feasibility of commencing domestic operations, such as flying to capital cities, in addition to its regional operations. This information was first released publicly to a journalist on 11 May 2020.
ASIC considers the ability to use a reduced-disclosure prospectus a privilege that is dependent on compliance with other aspects of the law, including that companies meet their ongoing disclosure obligations.
Where a company fails to comply with its disclosure obligations in a full, accurate and timely manner, ASIC will intervene to ensure that investors are protected.
ASIC’s investigation into REX’s conduct is ongoing.
REX has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
