Firm owned by parent of former Creso chairman ordered to sell shares following ASX rule breach

More shenanigans in Australia via Cannabiz who write..

A firm controlled by a parent of Creso Pharma’s former chairman Adam Blumenthal has been ordered to sell 14.5 million shares in the company following a breach of ASX rules.

Suburban Holdings received the shares as part of a placement in February which saw Creso raise A$5 million.

Despite becoming aware that Suburban was controlled by a parent of Blumenthal – and therefore required shareholder approval before participating in the raise – the firm was issued with the stock.

“Under the Corporations Act, a holding controlled by a parent of a director is deemed to be a related party of the company,” Creso said in a statement. “Therefore, Suburban’s participation in the placement required prior shareholder approval.”

Creso blamed the blunder on “an administrative oversight during the direct settlement of the placement between the broker who managed the placement, and the company’s share registry”.


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