ASIC won't take action after RFG investigation
30 June 2020, Written by Matt Ogg
The Australian Securities and Investments Commission (ASIC) has notified Retail Food Group (ASX: RFG) it will not be taking any enforcement action in relation to two concluded investigations of the franchise operator.
RFG shares are up 5.88 per cent this morning at $0.072 following the news, but a note from RFG clarifies no inference should be drawn from the regulator's decision.
"ASIC may also recommence its investigation, or commence enforcement action, if circumstances change," the company reported to the ASX.
The first investigation related to potential contraventions of the Corporations Act prior to 25 September 2018 - a period when companies including RFG were under the lens of a parliamentary inquiry into the conduct of Australian franchisors.
The second investigation launched on 9 July 2019 related to a large rise in the company's share price prior to the announcement of a $160 million recapitalisation that also drew enquiries from the ASX.
Gold Coast-based RFG owns franchises including Gloria Jean's, Brumby's, Donut King, Michel's Patisserie, Di Bella Coffee, Pizza Capers and Crust Pizza.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg