The curious case of a scale-up advisory's backdoor ASX listing via a defunct lolly shop
Scalare Partners' plan to list on the ASX through a reverse takeover of Candy Club Holdings has hit some significant regulatory roadblocks. But its CEO insists everything is on track.
When Scalare Partners unveiled plans in May to list on the Australian Securities Exchange it wasn't shy about its ambitions, declaring that it "exists to empower visionary technology founders to transform their ideas into the great businesses of tomorrow".
Four months on, the float of the scale-up advisory firm via a reverse merger with confectionary company Candy Club Holdings has hit what appear to be significant regulatory obstacles, albeit ones that CEO Carolyn Breeze insists it will overcome.
Last week the Australian Securities and Investments Commission (ASIC) issued two interim stop orders on Candy Club over the deal's prospectus and its target market determination, a regulatory requirement laying out who a financial product is appropriate for.
ASIC's stop orders prevent Candy Club from offering or issuing securities for 21 days. But Breeze described the situation as a "storm in a teacup" and said the stop orders never applied to Scalare or Candy Club as they weren't yet trading. She said she is expecting a green light from regulators early this week.
