Corporate regulator publicly ‘notes’ Chapman’s restated full-year results
Health & Biotech
Health & Biotech
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The corporate regulator took time out yesterday to publicly “note” that ASX-listed venture capitalist Chapmans had revised its full-year results, reducing net assets by $3.2 million.
“ASIC raised concerns with not consolidating subsidiaries and not equity accounting associates in the financial report for the year ended 31 December 2016,” the regulator said on Monday.
“Chapmans treated itself as an investment entity for accounting purposes and recognised subsidiaries and an associate as investments at fair value.”
The ASX suspended Chapmans from trade on September 1 “following failure to lodge either their preliminary final report or half year report and accounts for the period ended 30 June 2017, in accordance with ASX Listing Rules.”
Chapmans resumed trade last week after posting posting half-year results that showed a loss of $2.2 million and a 60 per cent drop in revenue to $993,200.
In a re-statement of calendar 2016 results, Chapmans (ASX:CHP) clarified their accounting standards in response to the Australian Securities and Investment Commission probe.
Its shares have since dropped to 0.4c.
Chapmans is one of many to have jumped on the bandwagon of medicinal cannabis in the past year, investing in Capital Mining’s (ASX:CMY) new venture, Capital Cannabis.
It lists its principal activity as “as a specialist investment company providing growth capital and advisory services to private and public companies across a concentrated but diverse range of industries including resources, engineering and technical services and mobile technology”.
On August 29, Chapmans announced a deal with MJ Life Sciences to invest $US500,000 in its global medicinal cannabis holding.