AIM-listed firm Environmental Recycling Technologies has been publicly censured by the London Stock Exchange for failing to notify the market of numerous rule-breaks, particularly those concerning price sensitive information.
Due to the firms financial position the LSE decided not to impose a fine but has taken into account the level of disregard shown for the AIM rules which amount to reckless conduct.
London Stock Exchange Group head of UK regulation Nick Bayley said: These are clear breaches of a number of key AIM rules which are designed to protect investors and ensure AIM companies maintain high standards of disclosure. We are determined to ensure that companies take their obligations of being on a public market seriously.
Listed breaches provoking the censure for July 2007 to June 2008 were:
* ERT kept quiet about using money raised in July 2007 to meet working capital needs and pay off other debt instead of paying off a significant loan and misled LSE to believe it had or would be repaying the loan
* Additionally, it did not inform the market that it was using shares to pay down the outstanding loan
* It then failed to immediately communicate its trading underperformances in the second half of 2007 and did not appropriately liaise with its nominated advisor.
Chairman of ERT Ken Brooks said: ERT has undergone key board and operational changes since the matters referred to in this public censure took place during the period from July 2007 to June 2008.