Medicinal cannabis company THC Global Group (THC) has successfully obtained the orders it requested from the Federal Court of Australia. Reports The Market Herald.
In June 2020, the company conducted a share placement, which involved the issue of just over 22 million fully paid ordinary shares. In connection with the placement, THC Global lodged a cleansing statement which was released on June 25, 2020.
However, upon review, the statement was determined to have been insufficient to adequately satisfy section 708A(5) of the Corporations Act.
The company felt that the market had been sufficiently informed, and that there was no excluded information between the cleansing statement’s release and the placement shares’ final issue date two trading days later.
In spite of this, THC announced on September 21 that it would take steps to issue a cleansing prospectus which would rectify the situation.
The company has since lodged that Prospectus with the Australian Securities and Investments Commission (ASIC) and sought orders from the Federal Court of Australia.
THC’s application was expedited on an urgent basis, allowing the matter to be heard by the Federal Court on September 22. The hearing was successful, resulting in the issue of the declaratory relief and ancillary orders which the company requested.
Having obtained these orders, THC Global will now make a request to the Australian Securities Exchange for a lift on the current trading halt. Once the company’s securities are no longer under a trading halt, they will recommence trading as normal.