The Oslo Stock Exchange imposes a violation charge on AS

On 17 June 2019, the Oslo Stock Exchange resolved to impose a violation charge on AS of NOK 300,000 for breaches of the duty to disclose inside information.

The Oslo Stock Exchange has passed the following resolution:
For material breach of the duty to disclose inside information to the market pursuant to section 3.1.1 (1) of the Continuing obligations of companies admitted to trading on Merkur Market, a violation charge is imposed on AS of NOK 300,000, cf. section 12.3 (2) and (3) of the Continuing obligations.

A brief summary of the case
In this case, Oslo Børs has noted several material breaches of the Continuing obligations of companies admitted to trading on Merkur Market. Overall, the breaches of the duty of disclose inside information are serious. In addition, there have been breaches of other obligations.

In December 2018, AS was in financial distress and there was a disagreement with the company's lender regarding the supply of capital under the existing loan agreement. This information constituted inside information no later than 20 December 2018. The matter was only partially disclosed by the company on 8 January 2019 in connection with notice of Extraordinary General Meeting, and further information was known through a newspaper article the following day.

On Monday 14 January 2019, AS was notified that the company's lender took legal action to prevent the Board's proposal for dissolution and liquidation of the company from being adopted at the Extraordinary General Meeting. This matter constituted inside information and was not disclosed by the company. The matter became known through media coverage on 18 January 2019.

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