The Australian Securities and Investments Commission has issued an interim stop order on Sam Lee's Bitcoin Group IPO which intends to float on the Australian Stock Exchange later this year. After considerable delays, the Bitcoin Group lodged its prospectus late last month with the regulator issuing the interim stop order on the 13th of July1. At this time, ASIC provides no information as to why it has issued the interim stop order. ASIC describes a stop order as:
A stop order is an administrative mechanism that allows ASIC to prevent offers being made under a disclosure document where we believe it contains:
- a misleading or deceptive statement
- an omission of information required to be provided under the legislation, or
- a new circumstance has arisen since the disclosure document was lodged.
If we impose a stop order on your disclosure document, your company is not allowed to offer, issue, sell or transfer its shares while that order is in force. An interim stop order may be made for up to 21 days, during which time a hearing must be held to give your company a chance to put its views to an independent delegate. After the hearing we may lift the interim stop order or place a final stop order on the disclosure document.
The interim stop order marks the second time that the Bitcoin Group has run afoul of the Australian regulators. In February of this year, ASIC issued a stop order on the aspiring bitcoin miner after it had concerns the group was soliciting for investors predominately from the Chinese community prior to registering as an Australian company.
Document #027846316 ↩