Rex (ASX:REX) cops fine but denies disclosure mishaps

Company News

by Michael Luu

Aviation services provider Regional Express (ASX:REX) has complied with an ASIC penalty notice and paid the $66,000 fine for alleged disclosure misconduct, yet denying all liability and reaffirming its legal integrity.

ASIC moved to penalise the airline operator, claiming that REX’s interview with the Australian Financial Review (AFR) last week was in violation of disclosure responsibilities under corporate law.

In a discussion session on May 11, the company revealed its intention to evaluate the possibility of offering domestic flight services to a news outlet without notifying or consulting the Australian Stock Exchange (ASX) in advance.

The news article was published the following day on May 12, unveiling details of the proposed business move to subscribers of AFR. This prompted the ASX to approach REX to address concerns about disclosure breaches and place REX in a trading halt.

The corporate regulator believed that REX should have released this proposal to the ASX before the interview, to guarantee fair and equal exposure to material information for all shareholders.

The $141 million company has responded by reiterating its consistent commitment to mandatory disclosure requirements and refuting ASIC’s perspective that Rex infringed corporate disclosure regulations.

This was not the first time Rex has been noted on ASIC’s bad books, as the financial watchdog had previously imposed a one-year ban on the company’s simplified disclosure documents for capital raising purposes.

Shares in Regional Express Holdings (ASX:REX) are trading 1.6 per cent higher at $1.30

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