ASIC has made a determination that iBosses Corporation Limited (iBosses) cannot  use exemptions for reduced disclosure in fundraising documents for 12 months.

ASIC made the determination after iBosses failed to lodge an audited financial report with ASIC for the year ended 31 March 2017 within the three month deadline. At the date of this release, iBosses has still not lodged a report.

The ASIC determination applies until 17 September 2018.

ASIC Commissioner John Price said, 'The exemptions from fundraising disclosure are provided on the basis potential investors have access to this information in quality financial reports. Where this information is omitted, or where companies do not comply with their financial reporting obligations, ASIC may restrict the use of reduced disclosure in fundraising documents'.

Background

Under the law, a listed company can offer securities using a reduced content prospectus containing information relating only to the particular offer itself.

ASIC has the power to prevent a company from relying on these rules if the company breaches its continuous disclosure or financial reporting obligations.

As a result of the ASIC's  determination, iBosses cannot use exemptions for reduced disclosure for sale offers of securities (section 708A of the Corporations Act) and rights issues (section 708AA of the Act). The company cannot also use the special prospectus content rules under section 713 of the Act.