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Australia: Sex.com prospectus premature

The Australian Securities and Investments Commission has placed an interim 'stop order' on the prospectus of sex.com.au Limited.

The Australian Securities and Investments Commission has placed an interim 'stop order' on the prospectus of sex.com.au Limited.

AUSTRALIA (ZDNet Australia)-- ASIC was concerned about a lack of disclosure in the sex.com.au prospectus, which sought to raise up to AU$3 million to fund the expansion and development of the sex.com.au Web site.

"The lack of disclosure made it difficult for potential investors to assess the financial position and prospects of sex.com.au," ASIC said in a statement.

The regulator was concerned about inadequate disclosure of the overall strategies and business plan for sex.com.au, saying the prospectus did not disclose sufficient information in relation to the proposed marketing expenditure and did not adequately disclose the projected sources of revenue for the site.

ASIC had previously extended the prospectus' exposure period by seven days as a result of some initial concerns in relation to disclosure in the prospectus.

Under regulations, a prospectus must contain all the information that investors or their professional advisors require in order to make an informed investment decision.