Following an ASIC investigation, Rhinomed Limited (Rhinomed) has paid a penalty of $33,000 for allegedly failing to comply with its continuous disclosure obligations.

Rhinomed, a respiratory technology company, made an announcement to the Australian Securities Exchange (ASX) on 9 July 2014 that it will partner with the Fitness First health clubs to promote its Turbine® technology throughout July.  The deal was described in the announcement as an "outstanding commercial opportunity" and "a real coup" for the company.

ASIC alleged on 6 June 2014 Rhinomed and Fitness First had entered into an agreement concerning a promotional campaign in which Fitness First was to promote the Turbine Product in some of its gyms and health clubs in Australia.

ASIC alleged by failing to inform the ASX of the agreement on 6 June 2014, Rhinomed was in breach of its continuous disclosure obligations.

ASIC issued the company with an infringement notice and Rhinomed has complied with the infringement notice and paid the penalty on 9 June 2015.

ASIC’s action follows a referral from the ASX.

Background

Section 674(2) of the Corporations Act and ASX Listing Rule 3.1 details listed companies’ continuous disclosure obligations.

The Corporations Act provides that compliance with infringement notices is not an admission of guilt or liability.

Rhinomed is not, by reason of its compliance with the notice, regarded as having contravened section 674(2) of the Corporations Act.

Details of the infringement notice will be published in the ASIC Gazette.