- Crowd Media Holdings (CM8) has responded to a price query from the Australian Securities Exchange (ASX)
- Prior to the market open on Tuesday, April 14, the company submitted an announcement to the exchange, saying it had signed a letter of intent with KINN Living
- Under the agreement, Crowd Media will sell KINN’s home cleaning, sanitisers and laundry-care essentials into the European market
- However, the ASX deemed the news non-price sensitive, and subsequently deleted the announcement
- As a result, Crowd Media shared the news with investors via a media release
- But when Crowd shares spiked following the news, the ASX issued a price query
- It’s unclear if the media release will now be resubmitted as a market announcement — price sensitive or not
- On the market this morning, Crowd Media is down 13.8 per cent, trading for 2.5¢ each
Crowd Media Holdings (CM8) has responded to a price query from the Australian Securities Exchange (ASX) after its shares spiked without an official announcement.
Missing announcement
Prior to the market opening on last Tuesday, April 14, the company submitted an announcement to the ASX about a letter of intent signed with KINN Living.
Under the agreement, Crowd Media will sell KINN’s home cleaning, sanitisers and laundry-care essentials into the European market, excluding the U.K.
However, the ASX thought the announcement was not price-sensitive and therefore did not require release under Listing Rule 3.1.
Listing Rule 3.1 requires companies to disclose “market sensitive” information to the ASX immediately. The announcement was then deleted by the ASX before it was put on the market.
The next day, Crowd Media posted a media release about the agreement, identical to the one provided to the ASX.
But following a share price spike, the ASX released a query about the movement without an announcement.
Response to ASX Questions
In its response today, Crowd Media explained what happened and how it posted a media release.
Crowd Media said it can confirm it is complying with the Listing Rules, particular Listing Rule 3.1.
Now, Crowd Media shares are back up and trading. There have been no other comments from either party about the matter.
It’s unclear if the media release will now be resubmitted as a market announcement — price sensitive or not.
On the market this morning, Crowd Media is down 13.8 per cent, trading for 2.5¢ each at 11:40 am AEST.