Aussie watchdog shafts sex.com float

The Australian Securities and Investments Commission has slapped a final stop order on Melbourne-based portal sex.com.au as part of a wider campaign "to protect investors".

SYDNEY (ZDNet Australia)-- The Australian Securities and Investments Commission has slapped a final stop order on Melbourne-based portal sex.com.au as part of a wider campaign "to protect investors".

ASIC says the three directors consented to the stop order after investigators raised concerns about inadequate disclosure. The prospectus cannot be used to raise funds for the portal, which acts as a referral to other sex sites and promotes itself as a "Guide to Sex Downunder".

"It was difficult to work out what their business plan was and how they intended to generate revenue," ASIC Director, Commercial Operations, Allan Bulman told ZDNet.

The Web site intended to raise between AU$2.1 million and AU$3 million after accumulating a loss of AU$30,700 to December 31st.

The Melbourne operation first lodged the prospectus with ASIC in April.

The regulator says the stop orders form part of its ongoing campaign to protect investors and improve the quality of fundraising disclosure in Australia.