TerraCom trades higher after $7.5m ASIC settlement
Make us a preferred source
Make us a preferred source on Google
The news: Small cap coal miner TerraCom’s is trading higher after reaching a settlement with ASIC over executive conduct, following whistleblower allegations it was involved in the falsification of coal quality results.
The numbers: TerraCom’s share price was up 5.36% to $0.059 at 12:03pm AEST, beating the wider materials sector which is down 0.35%.
The context: ASIC and TerraCom will lodge a statement of agreed facts and admissions with the Federal Court, bringing the more than two-year old case to a close.
If approved by the court, TerraCom will pay a $7.5 million fine for one admitted contravention of the Corporations Act and $1 million for ASIC’s legal costs. The first $4 million of the fine is to be paid within 28 days of the court order with the rest to be paid by 30 June 2026.
ASIC was suing TerraCom alongside managing director Daniel McCarthy, chief commercial officer Nathan Boom, former chair Wallace King and former director and deputy chair Craig Ransley for failing to ensure statements it made to the ASX in early 2020 responding to the whistleblower allegations were not false or misleading.
The financial regulator also alleged that allowing the publication of false or misleading statements was conduct that caused detriment to the whistleblower.
It alleged the four named executives failed to take reasonable steps after receiving an independent investigator’s report into the issues raised by the whistleblower.
The sources: ASX, ASIC media release
