After three years in operation, the founders of Forever Pay Ltd proceeded to a public float of their company and a listing on the ASX. The share prospectus highlighted the company's success in gaining a significant share of the fast-growing buy now pay later market and forecasted that the company would be highly profitable from 2023 onwards. The float was successful and the price of the shares rose by 100 per cent to $0.40 in the first week of trading. However, the prospectus failed to mention that it was being investigated for suspected money laundering offences by the government regulator, AUSTRAC. The investigation was launched after the prospectus had been issued but before the offer closing date. When news of the investigation was leaked to the press a month after the share issue, the share price plunged to $ 0.15.

Short answer question: Discuss the potential liability of the company and its directors for breach of the Chap 6D fundraising provisions.

Questioni-l After three years in operation, the founders of Forever Pay Ltd, proceeded to a public float of their company and a listing on the ASK. The share prospectus highlighted the company's success in gaining a signicant share of the fast growing buy now pay later market and forecasted that the company would be highly protable from 2023 onwards. The float was successful and the price of the shares rose by 16G per cent to SHAH in the first week of trading. However, the prospectus failed to mention that it was being investigated for suspected money laundering offences by the government regulator, AUSTRAC. The investigation was launched after the prospectus had been issued but before the offer closing date. When news of the investigation was leaked to the press a month after the share issue, the share price plunged to 5 0.15.1!-l 1.: Discuss the potential liabilityr of the company and its directors for breach of the Chap 5D fund raising p rovisionsnt-l 4