The Disciplinary Committee of Nasdaq Stockholm (“the Exchange”) has ruled that Mavshack AB (“Mavshack”) has breached Nasdaq Stockholm First North’s regulations (“the Rule Book”) and has therefore ordered Mavshack to pay a fine of SEK 293.304, corresponding to four times the company’s annual fee.
The case concerns Mavshack’s failure to comply with items 2.2.4, 4.1(a), 4.2 (a) and 4.9(a, b) of the Rule Book, all of which pertain to disclosure requirements.
It has been established in the matter that Mavshack experienced a challenging period during spring 2015 and that trading in the company’s shares was halted between May 4 and 11. In connection with this, the Exchange conducted a review of the information presented by Mavshack to the stock market and found that the company had, on several occasions, failed to meet its disclosure requirements.
The irregularities in question pertained to the manner in which the company disclosed a terminated contract and thus a significant decline in revenue, disclosure of the company’s revenue recognition, disclosure in connection with the general meeting pertaining to Mavshack’s acquisition of Ambient Media and the associated preferential rights issue, and disclosure of the outcome of the aforementioned preferential rights issue.
Mavshack also provided incomplete information in a press release published on July 10 about a financing agreement that was subsequently not completed and failed to publish the press release concerning its 2015 Annual General Meeting in due time.
The assessment by the Disciplinary Committee determined that Mavshack’s violations, in aggregate, should be considered serious since they made it highly difficult on a number of occasions for the stock market to assess Mavshack’s financial position and future prospects. According to the Disciplinary Committee, the violations show that Mavshack has breached its obligation to have a well-functioning organization and resources for meeting its disclosure requirements.
Although Mavshack has replaced its management and certain Board members, the company cannot avoid disciplinary measures. Accordingly, the Disciplinary Committee has ordered Mavshack to pay a fine corresponding to four times the company’s annual fee.
A detailed description of the matter and the Disciplinary Committee’s decision are available on:
http://www.nasdaqomx.com/listing/europe/surveillance/stockholm/disciplinarycommittee/decisions/
Participating in the Committee’s decision were former Supreme Court Justice Johan Munck, Supreme Court Justice Marianne Lundius, Company Director Anders Oscarsson, Company Director Jack Junel and Supreme Court Justice Ann-Christine Lindeblad.
