Commission Settles Provenco Insider Trading Case
3 October 2005
Securities Commission Settles Insider Trading Case Against Provenco
The Securities Commission has reached a settlement of its proceedings alleging insider trading which it brought against Provenco Group Ltd (formerly Advantage Group Ltd), directors Mr DJ Wolfenden and Mr NP Gordon, and former director Mr AH Bradley.
Following Advantage’s announcement of its half year result on 28 February 2003, Mr Wolfenden bought 100,000 shares for $18,000, Mr Gordon bought 300,000 shares for $52,800 and Mr Bradley bought 440,000 shares for $90,700.
In May 2003, Provenco (having changed its name from Advantage) conducted an on-market buy-back of 4,262,517 of its own ordinary shares, paying $1,470,000.
The Securities Commission considers that the defendants were in possession of inside information about the future earnings and business prospects when they made the share purchases. The Commission has brought proceedings under the Securities Markets Act 1988, alleging breach of the insider trading laws. The defendants contend that they have good defences to the claims made against them.
The Company and the named directors have agreed to pay the Commission the following sums: Provenco $300,000, Mr Bradley $150,000, Mr Gordon $130,000 and Mr Wolfenden $42,000. These sums represent in each case an amount for compensation, a component for penalties, and a contribution to the Commission’s costs.
This media statement is part of the terms of settlement approved by the High Court. No judgment will be entered against the Company of Messrs Wolfenden, Gordon and Bradley.