Former director of Quantum Resources Ltd Avrohom Mordechai Kimelman was charged with insider trading. He was charged with procuring the acquisition of shares, as well as in applying for shares in Quantum while in possession of insider information.
Kimelman served as a director and chief executive officer of Quantum at the time he applied for and procured the acquisition of over 3 million Quantum shares from 13 April 2016 to 5 May 2016.
The Australian regulator ASIC alleged that at the time Kimelman was in possession of inside information concerning the intention by Quantum (now Nova Minerals Limited) to acquire Manitoba Minerals Pty Ltd, which had agreed to acquire an interest in a lithium resource in Canada.
At the time of the alleged offences, the charges of insider trading could bring a maximum penalty of 10 years in prison. In March 2019, the maximum penalty was raised to 15 years.
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