Sprintex Limited Secures Court Orders to Address Compliance Lapses
SIX (SIX) Share Update November 2024 Monday 18th
Sprintex Limited Receives Court Approval for Compliance Orders
Sprintex Limited (ASX: SIX) has announced that the Supreme Court of Western Australia has approved its application to address previous compliance issues related to cleansing notices and annual report lodgements.
Instant Summary:
- Supreme Court approves Sprintex's application to rectify compliance issues.
- Cleansing notices were incorrectly issued between February and July 2024.
- Annual report lodgement deadlines extended for financial years 2023 and 2024.
- Trading of Sprintex securities to recommence on November 19, 2024.
Background of the Compliance Issues
Sprintex Limited, a company listed on the Australian Securities Exchange (ASX: SIX), faced compliance challenges when it failed to lodge necessary cleansing notices under section 708A(5)(e) of the Corporations Act for shares issued between September 8, 2023, and December 22, 2023. Additionally, cleansing notices issued from February 5, 2024, to July 10, 2024, incorrectly stated compliance with Chapter 2M of the Corporations Act due to the delayed lodgement of the company's annual report for the financial year ending June 30, 2023.
Court's Decision and Orders
The Supreme Court of Western Australia, presided by Justice Lundberg, granted Sprintex's application to rectify these issues. The court extended the deadlines for lodging the annual financial reports for the years ending June 30, 2023, and June 30, 2024, to October 4, 2023, and October 17, 2024, respectively. The court also validated the cleansing notices and share sales conducted during the affected periods, ensuring they are not deemed invalid due to previous non-compliance.
Impact on Trading and Future Actions
With these court orders, Sprintex anticipates the resumption of trading for its securities on November 19, 2024. The company is required to serve a sealed copy of the court's orders to the Australian Securities and Investments Commission (ASIC) and the ASX, and to notify all affected shareholders. The court has allowed a 28-day period for ASIC or any aggrieved party to contest the orders.
The court's approval for Sprintex to rectify its compliance issues is a positive development for the company, as it mitigates potential legal and regulatory repercussions. This resolution is likely to restore investor confidence and stabilize the company's stock price, which may have been impacted by the prolonged trading halt.
Investor Reaction:
Analysts are likely to view the court's decision favorably, as it removes a significant overhang on the stock related to compliance risks. Investors might be relieved by the swift resolution, but will remain cautious about the company's future compliance practices.
Conclusion:
Sprintex Limited's proactive approach in addressing its compliance issues and securing court approval is a crucial step in maintaining transparency and investor trust. Investors should monitor the company's future disclosures and compliance to ensure continued adherence to regulatory standards.