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The Board of Oslo Børs resolved at its meeting on 27 March 2008 to impose a violation charge on Global Geo Services ASA (GGS) equivalent to four times the company's annual listing fee, i.e. NOK 408,000.
The Board of Oslo Børs resolved to impose a violation charge on Global Geo Services ASA equivalent to four times the company's annual listing fee for breaches of Section 5-2 and Section 5-3 of the Stock Exchange Regulations of 1994, cf. Securities Trading Act, Section 17-4, third paragraph, cf. Securities Trading Regulations, Section 13-1, and for a breach of Section 5-19, first paragraph, of the Securities Trading Act of 1997, cf. Securities Trading Act, Section 17-1, fourth paragraph, cf. Securities Trading Regulations, Section 7-7.
In addition, the Board of Oslo Børs resolved to impose a violation charge on Global Geo Services ASA equivalent to two times the company's annual listing fee for breaches of Section 3.2.3 of Continuing Obligations as in force prior to 16 April 2007, and of Section 2.6, Section 3.1.2 and Section 3.2 of Continuing Obligations as in force prior to 1 January 2008, cf. Stock Exchange Act, Section 31, cf. Stock Exchange Regulations, Section 31.
The decision can be appealed to the Stock Exchange Appeals Committee. Any appeal must be submitted within two weeks.
Brief details of the case
The case concerns a number of events related to the share issues and refinancing carried out by GGS in the first half of 2007. Oslo Børs is of the view that the company was in breach of the provisions of the Stock Exchange Regulations on the duty of disclosure and delayed publication on three occasions.
In respect of the company's share issue in January 2007, a leak of information on 30 January 2007 meant that the conditions to delay publication of information were no longer satisfied and the company should have publicly disclosed information as required by Section 5-2, first paragraph and Section 5-3, fourth paragraph, of the Stock Exchange Regulations.
In addition, the company failed to carry out its duty to notify Oslo Børs confidentially of its decision to delay the public disclosure of merger negotiations and a planned share issue at the end of May 2007, cf. Continuing Obligations, Section 3.1.2, third paragraph.
The company failed in respect of its share issues both in January 2007 and June 2007 to publicly disclose information on the ex-date, cf. Continuing Obligations, Section 3.2.3, second paragraph and Section 3.2, second paragraph. In the case of the latter share issue, the company also failed to carry out its duty to send an updated company registration certificate to Oslo Børs immediately and on its own initiative, cf. Continuing Obligations, Section 2.6.
Moreover, GGS failed to carry out its duty to publish the prospectus before the shares issued in connection with the share issue of June 2007 were admitted to listing, cf. Securities Trading Act, Section 5-19.
The minutes of the consideration of this case by the meeting of the Board of Oslo Børs, with a detailed evaluation of each matter, will be made available on the Oslo Børs website Monday 31 March.
