Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has confirmed that it is no longer the subject of an investigation by the Australian Securities and Investment Commission (ASIC).
On November 22, 2021, the cannabis-producing ASX-lister was served with a notice issued by ASIC under Section 33 of the ASIC Act, requiring it to produce certain documents in connection with an investigation.
On August 16, 2022, the company was served with a further Section 33 notice in connection with that same investigation. CPH claims that it complied with both notices.
Those notices revealed that ASIC’s investigation related to persons and entities associated with Everblu Capital Pty Limited and the company, which included suspected contraventions of:
- Section 1041A and/or 1041B of the Corporations Act, by the company, its officers, agents, employees or representatives; and
- Sections 180, 181, 182, 183 and/or 184 of the Act by officers of the company relating to trading in the company’s securities in the period March 5 to November 16, 2021.
ASIC has since, by letter sent to CPH yesterday evening, confirmed that the scope of its investigation no longer includes any suspected contraventions by Creso Pharma.
The regulator has also confirmed that, as at the date of its letter, Boaz Wachtel and James Ellingford – who were in the relevant period, and remain, directors of the company – and Chris Grundy, CFO of the company during the relevant period to date, are not persons of interest in its investigation.
The company believes that the current scope of ASIC’s investigation does not include any suspected contraventions by any such individuals or by any other current directors of the company.
According to CPH, the letter indicated that ASIC “may at any time change the scope of its investigation, including to reintroduce suspected contraventions that previously were, but are not currently, under investigation”.
No action expected
Following the letter, the board of CPH does not expect that any enforcement action will be taken against the company, or any of its current officers or employees.
ASIC’s investigation concerning trading in Creso Pharma’s securities by external parties is ongoing, and the company is cooperating in this investigation.