The Australian Securities & Investments Commission (ASIC) issued two interim stop orders on Green Planet Recycling Solutions Limited’s public offer of redeemable preference shares under a prospectus lodged on 29 January 2025, citing prospectus disclosure concerns and a failure to comply with design and distribution obligations (DDOs) by not preparing a target market determination (TMD). The orders prevent the company from offering or issuing the securities under the prospectus and from dealing in the securities, giving a prospectus, or providing financial advice to retail clients. ASIC’s concerns included that the prospectus did not adequately disclose information required under section 710 of the Corporations Act 2001, including historical financial information, the business model, proposed use of funds, rights and liabilities attached to the securities, capacity to pay dividends, and key offer risks. ASIC also flagged potentially misleading statements about sustainability and the company’s operating status, and that information was not presented in a clear, concise and effective manner. Separately, ASIC considered the issuer to have contravened DDO requirements by not preparing a TMD for the offer. The interim stop orders remain in force for 21 days unless revoked earlier.
Australian Securities & Investments Commission 2025-02-17
Australian Securities & Investments Commission issues two interim stop orders against Green Planet Recycling Solutions’ AUD 20m preference share offer
ASIC issued interim stop orders on Green Planet Recycling Solutions Limited's offer of redeemable preference shares due to inadequate prospectus disclosures and non-compliance with design and distribution obligations. Concerns include insufficient information on financials, business model, fund use, risks, and potentially misleading sustainability claims. The company also failed to prepare a target market determination. The orders prevent offering, issuing, or advising on the securities for 21 days unless revoked earlier.