ASIC has restricted XTC Lithium Limited (XTC), My Rewards International Limited (MRI) and Range International Limited (RAN) from issuing a reduced-content prospectus for 12 months after they failed to lodge financial and other reports in line with their obligations.

ASIC’s determinations mean that XTC, MRI and RAN will not be able to rely on the reduced-disclosure rule under section 713 of the Corporations Act and instead must issue a full prospectus if they wish to raise funds from retail investors.

ASIC considers the ability to use a reduced-content prospectus a privilege dependent on a company’s compliance with the law. Lodging financial reports on time, that have been audited in accordance with the auditing standards, is a fundamental obligation for listed companies. Where these obligations are not complied with, ASIC can make determinations to exclude them from relying on reduced-content prospectus relief. This is to ensure that retail investors have access to fulsome, accurate and up to date information (including financial information) before deciding whether to invest in a company.

XTC, MRI and RAN have the right to appeal to the Administrative Appeals Tribunal for review of ASIC’s decision.