The Financial Conduct Authority (FCA) has censured Redcentric PLC for market abuse. Redcentric has agreed to pay compensation to affected investors.
The FCA found that Redcentric, which is admitted to trading on AIM, issued unaudited interim results in November 2015 and audited final year results in June 2016 which materially misstated its net debt position and overstated its true asset position in circumstances where it knew, or ought to have known, that the information was false and misleading. Redcentric had therefore engaged in market abuse contrary to section 118(7) of the Financial Services and Markets Act 2000 (now Articles 12 and 15 of the Market Abuse Regulation (MAR)).
Redcentric has put in place a scheme to provide compensation to affected purchasers of Redcentric shares. It is estimated the value of the scheme to potential claimants is £11.4 million. The FCA says that this is the first time that an AIM company has offered to implement its own scheme to pay compensation to those affected by the harm it caused as a result of market abuse.
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