An interim stop order placed by ASIC on Neldner Road Vintners in response to deficiencies in the issuers’ Target Market Determinations (TMD) has been revoked.
The stop order was placed on 24 October 2022 and in a media release on Wednesday morning, ASIC said it made the interim stop order to protect retail investors from potentially investing in offers that may not be suitable for their financial objectives, situation or needs.
Neldner is an unlisted public company seeking to raise $10 million through the issue of Class A shares under an offer information statement. Neldner was seeking working capital, and funds for the acquisition of vineyards as well as the construction of a cellar door, winery and accommodation facilities.
Amongst other concerns, ASIC considered that the distribution conditions contained in the TMD were not appropriate to ensure the Class A shares would likely be distributed to the consumers in the target market.
Neldner had intended to rely on investor self-certification that they were in the target market.
Under the design and distribution obligations (DDO), the onus is on the product issuer to ensure that consumers who acquire the product are in the target market, rather than relying on investors’ self-determining that they fall within the target market.
ASIC could not locate a publicly available version of the TMD.
After the interim stop order was placed on the offer, Neldner proposed amendments to its TMD that addressed ASIC’s concerns. As a result, ASIC revoked the stop order on 7 November, and no final stop order was made.