Dr Earl Stevens of ICP. Photo / Dean Purcell
The Securities Commission today cleared blood products company ICP Biotechnology of not continuously disclosing its position.
The watchdog received anonymous allegations ICP had misled investors and shares had been subject to insider trading, particularly by Earl Stevens, former managing director and major shareholder.
The watchdog reviewed ICP's continuous
disclosure regime, particularly its forecast of revenue and earnings for the June 2007 year and allegations of insider trading against Dr Stevens.
It examined the relationship of the sale of a million shares by Dr Stevens and the company announcement on May 4 that it would not meet forecast sales targets and would make an $8 million loss in the June year.
The commission said it corresponded with ICP and Dr Stevens, and reviewed board minutes and other papers.
It found Dr Stevens had been given prior approval for selling a one million parcel of shares.
The commission also found no evidence of continuous disclosure violations by ICP.
Dr Stevens is expected to clash vigorously with fellow major shareholder Viking Capital, run by Brent King, at the annual meeting on September 28.
Dr Stevens was ousted as managing director following the profit downgrade in May. He was unable to take up the rights attached to his then 22 per cent stake in ICP's partially successful rights issue.
Mr King's Viking has applied for a listing rules waiver to increase its 19.4 per cent stake to nearly 30 per cent without making a full takeover offer.
Viking has agreed to sell two freeze dryers it is leasing to ICP for $1.7 million worth of ICP shares and warrants -- equivalent to nearly 10 per cent of ICP's capital.
Dr Stevens last month accused Viking and Mr King of taking control of ICP by stealth and downplaying the strength of the company, an accusation Mr King rejects.
ICP shares last traded at 5.4 cents and have lost two thirds of their value since April.
- NZPA
