ASIC issues warning to mining companies moving into tech sector

The Australian Securities and Investment Commission (ASIC) has identified emerging trends, mainly among small and mid-sized mining and exploration companies, which it said were similar to problems during the dot-com boom of the early 2000s when firms rushed to cash in on the new technology market.

ASIC commissioner Cathie Armour urged shareholders to inform themselves of the potential risks when companies changed their business operations.

ASIC has identified 12 companies in WA that have already made the change from mining or industrial companies into technology or bio-technology businesses.

ASIC commissioner John Price said in some cases the audited financial reports of the incoming company had not been disclosed, despite a legal requirement to do so.

The corporate watchdog has warned Perth mining companies seeking to transform themselves into technology businesses to fully disclose their intentions to the market and shareholders.

However ASIC has intervened to improve the level of disclosure or reporting of three of the 12 companies that had made the change.

Read more here: ABC


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