Australian wood-fibre processor and exporter Midway Limited has paid a $33,000 infringement notice over ASIC concerns that it failed to comply with its continuous disclosure obligations.
ASIC issued the infringement notice following an investigation into announcements made by Midway on the Australian Securities Exchange (ASX).
ASIC alleges that on 11 February 2022, Midway became aware that sales revenue for the first half of the 2022 financial year had dropped 39.6%, materially lower than the previous corresponding period. However, Midway did not announce the revenue downturn to the ASX until it was required to release its 2022 half-year results on 24 February 2022.
ASIC alleges that Midway was required to notify the ASX about the decline in sales revenue as it had previously released a sales volumes forecast and positive outlook statements for sales volumes.
Midway paid the penalty on 16 January 2023 in compliance with the infringement notice.
Payment of an infringement notice is not an admission of guilt or liability.
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Background
Further information about ASIC’s administration of continuous disclosure notices is contained in ASIC Regulatory Guide 73 Continuous disclosure obligations: infringement notices (RG 73).