ASIC’s interim stop order on the Offer Information Statement (OIS) lodged by Rural & General Insurance last December is still in place. No offers, issues, sales or transfers of the securities may be made by R&G.

R&G is attempting to raise $5 million through the OIS by offering shares to its existing insurance clients at 50 cents a share. According to ASIC, the interim stop order on the OIS was applied because “the document stated that R&G intends to subscribe to the share listing and trading services of an exempt stock market”.

“However, there is presently no application before ASIC on behalf of R&G for approval of an exempt stock market,” the statement said. Additionally, it will not be possible to establish an exempt stock market after the March 11 commencement of the FSR Act.

ASIC’s Corporate Finance Director Richard Cockburn said, “inaccurate disclosure in an OIS about listing has great potential to mislead investors. An indication that a company will list can be a highly influential factor for investors and their professional advisers when making an investment decision.”

He said ASIC would take action to ensure that offers including potentially misleading information are removed from the market. 

R&G CEO Charles Pratten told Sunrise Exchange News that ASIC has “apologised” and he is waiting for a written response. But Mr Cockburn said he has no knowledge of ASIC apologising. “I’m not clear on what we should be apologising for,” he said.