Novonix Limited, in the matter of Novonix Limited [2019] FCA 2198

Novonix Limited, in the matter of Novonix Limited [2019] FCA 2198

The inadvertent failure of Novonix Limited to give a cleansing notice to ASX within 24 hours before making share purchase plan offers did not cause substantial injustice or prejudice, and was promptly rectified upon discovery. The court was satisfied it was just and equitable to extend time for compliance and to declare the offers and applications valid, consistent with the remedial purpose of s 1322 of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
20 December 2019
Procedural Posture
Corporations Application / Application for Orders to Validate Securities Offer and Extend Time to Give ASIC Notice
Outcome
Orders made extending time for cleansing notice and validating share purchase plan offers and applications.
Legal Topics
['share Purchase Plans' 'cleansing Notice Requirements' 'relief for Procedural Non Compliance' 'asic Regulatory Instruments']
['corporations Law'] ['share Purchase Plans' 'cleansing Notice Requirements' 'relief for Procedural Non Compliance' 'asic Regulatory Instruments']

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Procedural Posture

Corporations Application / Application for Orders to Validate Securities Offer and Extend Time to Give ASIC Notice

Legal Issues

  1. 1 ['Whether the court should extend the time for giving a cleansing notice under the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 (Cth)' 'Whether share offers and applications are invalid due to failure to give cleansing notice in time' 'Whether it is just and equitable to make the validating orders' 'Whether substantial injustice would result from granting orders']

Ratio Decidendi

The inadvertent failure of Novonix Limited to give a cleansing notice to ASX within 24 hours before making share purchase plan offers did not cause substantial injustice or prejudice, and was promptly rectified upon discovery. The court was satisfied it was just and equitable to extend time for compliance and to declare the offers and applications valid, consistent with the remedial purpose of s 1322 of the Corporations Act 2001 (Cth).

Court Disposition

Orders made extending time for cleansing notice and validating share purchase plan offers and applications.

Orders

  • ['The time for Novonix Limited to give a cleansing notice to ASX under paragraph 7(f)(ii) of the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 is extended to 4:00pm (Brisbane time) on 17 December 2019.' 'The offers of securities and applications received under the share purchase plan...