Have you held shares in Quintis (ASX:QIN)?
Bannister Law has launched a class action against Quintis Ltd (ACN 092 200 854) on behalf of shareholders, who may be eligible for compensation.
Bannister Law is alleging that in an ASX announcement dated 26 February 2016, Quintis and former director, Frank Wilson, represented that 100% of its 2016 and 2017 harvests were forward sold, and made further representations about the purchasers of these harvests.
Bannister Law is alleging that these harvests were, in fact, not forward sold. It has also been reported that Quintis lost a contract supplying Galderma on 16 December 2016, but only disclosed that fact to the ASX over 4 months later, on 10 May 2017. Shares fell 44% on the announcement.
Bannister Law is alleging that Quintis was in breach of its continuous disclosure obligations in only announcing the information to the ASX on 10 May 2017.
Principal Charles Bannister, Solicitor stated:
“Inadequate disclosure of this type is simply unacceptable in Australia. Continuous disclosure is at the heart of buyers confidence in the share market and impacts directly on the share price of listed entities, as this news demonstrates”.
If you purchased shares between 26 February 2016 and 10 May 2017 you may be eligible for compensation, and should immediately register your details.
Frequently Asked Questions
What is the basis of this Class Action?
A Class Action is a representative proceeding brought by one individual on behalf of other affected Group Members. The Class Action has been commenced by Mr Andrew Wyma (the Applicant).
The Class Action has been brought against the Respondent. The Respondent is Quintis Ltd (ACN 092 200 854) (QIN).
TFS Corporation listed on the ASX in 21 December 2004. On 22 March 2017 it changed its name to Quintis Ltd (ASX:QIN).
At all relevant times, QIN’s business included the plantation, cultivation, sale, provision of finance and production of pharmaceutical grade Sandalwood oil and related products.
Each sandalwood tree requires four host trees over a 15-year lifespan to ensure a healthy and potent amount of marketable oil bearing heartwood. Sandalwood oil is used for rejuvenating and brightening skin, disinfecting skin and protecting skin from harmful bacteria, and alleviating stress and encouraging relaxation.
On 10 May 2017, QIN announced to the ASX that on 16 December 2016 it had lost a significant contract supplying sandalwood oil to a subsidiary of Nestle called Galderma. Galderma advised QIN of its intention to terminate the sandalwood supply contract on or about 30 November 2016. The Class Action will allege that, due to a delay in announcing this material information, there has been material market non-disclosure in breach of the Corporations Act 2001 (Cth) (Corporations Act).
As a result of this non-disclosure, QIN’s shares traded at inflated prices from 30 November 2016 to 10 May 2017 (Relevant Period). This resulted in investors overpaying for their shares, thus creating loss.
The Applicant alleges that because these disclosures were not made, QIN contravened the Corporations Act (Continuous Disclosure Contraventions).
The Applicant claims that he, and Group Members, would not have acquired shares in QIN and accordingly would not have suffered loss and damage if proper disclosures had been made.
The Applicant seeks orders that QIN compensate the Applicant and the Group Members for the losses sustained as a result of the alleged contraventions of the Corporations Act. Each Group Member’s loss will depend on when they acquired their shares in QIN and whether any shares were sold.
Who is eligible?
If you are eligible you are automatically a member of the class action (group member). To be eligible, you must have:
a) obtained an interest in ordinary shares in QIN by purchasing those shares on the Australian Securities Exchange during the Relevant Period; and
b) suffered loss or damage by reason of the contraventions of QIN as set out in the Statement of Claim.
If you do not meet these criteria, you are not a Group Member.
If you are unsure whether or not you are a Group Member, you should contact Bannister Law on (02) 8999-2888 or email [email protected], or seek your own legal advice without delay.
What will Bannister Law claim for Group Members?
The Class Action will seek damages as a result of the alleged misconduct by QIN.
Bannister Law is claiming damages for the following loss suffered by the Applicant and Group Members:
(i) the difference between the price at which they acquired their interest in QIN shares and the true value of that interest;
(ii) alternatively, the difference between the price at which they acquired their interest in QIN shares and the market price that would have prevailed but for the Continuous Disclosure Contraventions (as alleged in the Statement of Claim);
(iii) alternatively, the difference between the price at which they acquired their interest in QIN shares and whatever is ’left in the hand’ or has been realised upon a sale modified to take into account any part of the movement in the market price of the QIN shares which did not result from the Continuous Disclosure Contraventions; and
(iv) in addition to the loss in (i)-(iii), the loss of the opportunity to achieve a reasonable rate of return on the moneys used to purchase the interest in QIN shares.
The Court will decide whether and to what extent any damages claim may be allowed if the Class Action succeeds.
If you would like to receive a copy of the Statement of Claim filed on behalf of the Applicant and Group Members, please contact us.
How much compensation will Group Members receive?
At this stage, it is not possible to calculate how much compensation Group Members might receive. Any potential compensation (or damages) awarded to Group Members will depend on the Court’s findings in relation to the Applicant’s claim and the findings on the common issues, or alternatively the terms of any settlement which may be reached.