Australian plus-size retailer City Chic (ASX: CCX) has responded to a series of questions lobbed at them by the Australian Securities Exchange over compliance issues.
Last month, City Chic released two trading updates regarding the sale of its Avenue business, a capital raise and preliminary financial forecasts that came after the Australian Financial Review reported on the very information in two separate articles.
In a series of questions, the ASX asked City Chic if it or anyone representing the business shared the details of its capital raise, the Avenue business sale and preliminary financial forecasts to anyone outside the business.
City Chic claimed it made “reasonable enquiries” of its directors and officers and its relevant advisers and service providers and found that no statement was provided to the media concerning information in both articles.
“CCX is not aware of how the information appeared in the First Article and Second Article respectively,” City Chic wrote.
“CCX has in place a Continuous Disclosure Policy to ensure the protection of confidential information and the timely and balanced disclosure of all material matters concerning CCX.
“CCX takes steps to ensure the information that is price sensitive is restricted to employees and advisers on a need-to-know basis and that those employees and advisers are aware of CCX's continuous disclosure policy, including the fact that information that is for release to the market cannot be released to external parties, including the media (even on an embargoed basis).
“The disclosure of price-sensitive information is subject to disclosure processes which is either approved by the CEO and Company Secretaries or otherwise elevated to the Board of Directors for approval. External advice is also sought as considered appropriate.”
When asked what additional steps were taken to ensure compliance with one of the ASX’s listing rules, City Chic reported that its current arrangements “are adequate and customary for companies of a similar nature” to the business.
“CCX has always ensured, and will continue to ensure, that each of its engagements with its advisers and service providers, particularly with respect to M&A transactions and capital raisings, have robust confidentiality provisions to ensure compliance with Listing Rule 15.7.”