Byte Power fined $33,000 for alleged violation of its disclosures contract

fca fine

Byte Power Group Limited, which is listed on the Australian Stock Exchange (ASX) today paid a fine of $33,000 after the Australian regulator ASIC issued the company with an infringement notice citing its failure to abide by its official continuous disclosure contract.

Byte Power is a company with diverse interests within the food and wine distribution industry as well as the technology sector. The infringement was committed on 27 October 2017 when the company issued the ASX with a note/document titled “BPG Cryptocurrency Exchange Update.”

The ASX later identified a statement that Byte Power’s partner Soar Labs Pte Ltd (Soar Labs) based in Singapore was already developing a software for the company that it would start Alpha testing by year’s end.

The ASIC charges that the above statement had been proven materially incorrect by 14 December 2017 as Byte Power had engaged different software providers and Soar Labs had not started working on the software and there was no prototype ready for testing.

At this time, Byte Power had officially violated its continuous disclosures contract, and the ASIC issued the company with a notice of infringement. Byte Power obeyed the notice and paid the fine on 5 February 2019.

The ASIC further restricted Byte Power’s ability to request funding without including full disclosures by requiring the company to strictly use a full-form prospectus for such activities up to 12 December 2019.

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