FMA cancels prospectus

News release

16 October 2013

FMA cancels prospectus

The Financial Markets Authority (FMA) has cancelled the combined offer document of FMP Medical Services Limited (FMP) because it believes it is false or misleading. FMA is also of the view that the offer document is likely to deceive, mislead or confuse.

This is the first time that FMA has cancelled an offer document and it means FMP must stop the offer and that it cannot allot any shares. FMP must immediately repay any investors who have subscribed to the offer.

The sole shareholder and director of FMP is Antone Thomas Pedras, who also goes by the name of Christopher or Chris Pedras. The offer document said the purpose of the offer was to set up a chain of renal dialysis clinics in New Zealand.

FMA Head of Primary Regulatory Operations, Simone Robbers, said the decision to cancel the offer document was in the public interest.

“FMP failed to effectively communicate the risks of investing, including its plans to substantially dilute the value of any public investment, and its lack of any real business plan,” said Ms Robbers.

“Offer documents must not be false or misleading and must include all material information to assist investors when they are deciding whether or not to invest. We could not allow FMP’s offer to go to market.”

FMA’s risk-based approach to reviewing prospectuses picked up FMP’s offer when it was registered in August. FMA issued an interim order prohibiting the allotment of shares while it carried out a thorough review.

“By picking this up at an early stage FMA has been able to step in and take action to protect potential investors considering this offer,” said Simone Robbers.

A copy of the order can be found here.

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