“Pot stocks” – Medical cannabis listings and other updates from ASX – Lexology

On 30 October 2017, ASX released a “bumper” update with further details of Listing Rule changes that will take effect from 1 December 2017. The main changes are to implement ASX’s new shareholder approval requirements for reverse takeovers (which are the most significant changes – see our separate Reverse takovers update) and to provide further guidance on ASX listing applications – most notably, to clarify once and for all, ASX’s expectations about the financial accounts to be provided by a company applying for quotation on ASX.

Changes relevant to IPO market participants

For any entity considering an ASX-listing and its financial, accounting and legal advisers, careful review of ASX Guidance Note 1 (in addition to Chapter 1 of the Listing Rules) is even more critical as the latest changes show how ASX is using this Guidance Note to be transparent about the full range of requirements it imposes on ASX-aspirants.

Some key new features of general application are:

(financial accounts required to list on ASX) the guidance note now includes a detailed table, which ASX has settled with ASIC, that clarifies and summarises the respective financial account requirements that an applicant for listing must meet in 14 different but “common” scenarios. This is an extremely useful piece of guidance which sets out the ASX and ASIC financial account requirements side by side and covers scenarios such as financial accounts requirements for roll-ups. (timing of lodgement of listing application) ASX stresses the importance of lodging your listing prospectus or PDS with ASX as soon as possible after lodging it with ASIC, and not to wait until the end of the 7 day lodgement period provided for in the Corporations Act. (director good fame and character) ASX confirms that it will not waive its “good fame and character” requirements in any circumstances

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