Bellamy's Australia has paid a penalty of $66,000 after an infringement notice was issued for an alleged failure to comply with its continuous disclosure obligations.
The infringement notice was issued by the Australian Securities and Investments Commission issued after an investigation into an announcement made to the ASX on December 2, 2016 by Bellamy's.
The payment of the fine is not an admission of guilt or liability.
At the time the company said the expected revenue for the first half of the 2017 financial year was anticipated to be $120 million.
The announcement triggered a massive share price plunge.
The company also said if current trends in its existing channels-to-market continued revenue for the second half of the 2017 financial year would be similar.
- Bellamy's Australia: The inside story
- Bellamy’s hits roadblock in China as export licence suspended
- Bellamy’s passes Chinese test
- Investors backing Bellamy’s
- Investors lash Bellamy's as it swings into the red
On October 18, 2016, the board was informed that the forecast for sales revenue for the 2017 financial year was $368.1 million.
However, ASIC has alleged that by October 18, Bellamy's ought to have been aware that it was unlikely to achieve forecasts given its sales performance in the first quarter of that year.
It was also alleged that by failing to inform the ASX by October 18 Bellamy's was in breach of its continuous disclosure obligations.
“Bellamy’s considers that it complied with its continuous disclosure obligations in the period leading up to its trading update of December 2.”
ASIC Commissioner Cathie Armour said investor confidence in our markets depended on the timely disclosure of market sensitive information.
“Listed companies must promptly disclose changes to performance forecasts previously made to the market,” she said.