Company linked to Titans bid reined in
AUSTRALIA’S corporate regulator has taken action against a company linked to a failed bid to buy the Gold Coast Titans last year.
Stuart McAuliffe is managing director of investment management company John Bridgeman – which lost out to Darryl Kelly and Rebecca Frizelle when they bought the Titans NRL licence late last year.
The Titans had been in the hands of the NRL since the governing body bailed it out in 2015. The bid from Mr Kelly and former chairwoman Ms Frizelle was ultimately successful.
Mr McAuliffe, 48, who has been a finance lecturer for Bond University, is also managing director of listed fund manager Henry Morgan Limited.
ASIC has restricted HML from using a reduced-content prospectus to raise funds from retail investors until June next year.
A statement from the regulator said the company had failed to lodge a financial report, directors’ report and auditor’s report within the timeframe required by the Corporations Act.
HML had told the ASX it planned to raise $79.16 million by selling its unlisted stake in two companies, including one named Bartholomew Roberts, of which Mr McAuliffe is a director and major shareholder.
He is a previous director and current shareholder of the other company, JB Financial Group, which also has the company behind the Titans bid, John Bridgeman, as a shareholder.
The Bulletin has contacted Mr McAuliffe for a response.
The companies are among at least 19 directed by Mr McAuliffe, which have names derived from notorious pirates.
ASIC’s decision means HML will not be able to rely on reduced-disclosure rules and instead must issue a full prospectus if it wishes to raise funds from retail investors.
“ASIC considers the ability to use a reduced disclosure prospectus a privilege, one dependent on compliance with other aspects of the law, including companies meeting their ongoing disclosure obligations,” the regulator’s statement said.
“Where a company fails to comply with its periodic disclosure obligations in a full, accurate and timely manner, ASIC will intervene to ensure that retail investors are protected.
“In such circumstances, subsequent fundraisings should occur only with the benefit of a full prospectus so that there is adequate disclosure of a company’s prospects and financial position.”
HML has the right to appeal to the Administrative Appeals Tribunal for review of ASIC’s decision.
HML’s last annual report details a revenue increase of 1493 per cent from $2.6 million to $41.1 million.