Following an ASIC investigation, Living Cell Technologies Limited (LCT) has paid a penalty of $33,000 for allegedly failing to comply with its continuous disclosure obligations.

LCT is an Australasian biotechnology company that develops cell therapies to treat diseases such as type 1 diabetes and Parkinson's disease. LCT conducted a Phase I/IIa study of NTCELL, an experimental regenerative cell therapy being studied as a disease-modifying agent in Parkinson's disease. 

On 15 June 2015 an announcement titled, "NTCELL Clinical Study in Parkinson's Meets Endpoints" (the Announcement) was released by LCT on the Australian Securities Exchange (ASX) Market Announcements platform.

Prior to this, at 2:07pm on Friday 12 June 2015 an email was sent by the Chief Executive Officer of LCT to seven New Zealand based investors of LCT, attaching a copy of an announcement titled, "NTCELL Clinical Study in Parkinson's Meets Endpoints" (Proposed Announcement), a copy of the NTCELL Poster to be presented at the International Congress of Parkinson's Disease and Movement Disorders and information regarding an investor call to discuss the Phase I/IIa study findings.

The Proposed Announcement attached to the email was identical in all material respects to the Announcement that was released on the ASX Market Announcements platform by LCT on 15 June 2015.

ASIC alleged that by 2:07pm on 12 June 2015 LCT was aware of the results from a Phase I/IIa Clinical Study of NTCELL, as described in the Announcement.

ASIC alleged that by failing to immediately provide the Announcement to the ASX on 12 June 2015, LCT was in breach of its continuous disclosure obligations.

ASIC issued the company with an infringement notice and LCT has complied with the infringement notice and paid the penalty on 17 December 2015.

ASIC's action follows a referral from the ASX.

Background

Section 674(2) of the Corporations Act 2001 (Corporations Act) and ASX Listing Rule 3.1 details companies' continuous disclosure obligations.

The Corporations Act provides that compliance with infringement notices is not an admission of guilt or liability.

LCT is not, by reason of its compliance with the notice, regarded as having contravened section 674(2) of the Corporations Act.

Details of the infringement notice will be published in the ASIC Gazette.