Friday 24 November 2006 LAWFUEL – Legal News, Legal Jobs – The Australian Securities and Investments Commission (ASIC) has today obtained orders in the Federal Court of Australia appointing a provisional liquidator to Victorian-based unlisted public company, Warrenmang Limited (Warrenmang). Under the orders, Justice Finkelstein appointed Mr Colin McIntosh Nicol, of McGrathNicol+ Partners, as the provisional liquidator.
These orders follow the commencement of an investigation by ASIC into the affairs of Warrenmang after concerns the company may not have refunded all the application money owed to subscribers following an unsuccessful capital raising. The Pre-Initial Public Offering is believed to have raised $1 million in seed capital. The Initial Public Offer is believed to have raised over $2.2 million. ASIC’s investigation is not related to the Warrenmang Vineyard and Resort in Bendigo, Victoria. Background Warrenmang was incorporated on 1 September 2003 as a vehicle to acquire wine businesses in Victoria. Warrenmang issued a prospectus in December 2003 to raise a minimum of $6 million with a view to listing the company on the Australian Stock Exchange (ASX).
This prospectus stated that the funds raised would be used to acquire and consolidate various wine and vineyard businesses. Warrenmang failed to raise the minimum subscription and list on the ASX. In March 2004, a supplementary prospectus was issued to extend the offer period for a further three months. Warrenmang was again unsuccessful in raising the minimum amount and the planned public float never took place. The law requires that application money received from investors be held in a trust account until the securities are issued or application money returned to the investors. ASIC commenced its investigation following complaints received in October 2006.
The investigation is not related to businesses proposed to be acquired by Warrenmang as described in the prospectus. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310