ASIC has applied to the Federal Court to wind up Traditional Therapy Clinics Limited (TTC), a company that was previously listed on the ASX and has business operations in China.
ASIC seeks orders that TTC be wound up and liquidators Adam Nitikins and Samuel Freeman, of Ernst & Young, be appointed.
TTC has its registered office in Perth, Western Australia, and is a franchisor and owner of traditional therapeutic health and wellness clinics in China.
On 3 September 2015, TTC was admitted to the official list of the ASX following the company raising $15 million through a prospectus issued on 20 June 2015.
Three years later, the ASX suspended TTC’s shares from trading following the company’s failure to lodge its 2018 half year report by the due date.
On 16 November 2018, the TTC board appointed Daniel Johannes Bredenkamp and Bryan Kevin Hughes, of Pitcher Partners, as administrators of the company.
On 17 December 2018, the ASX delisted TTC following the company’s failure to respond to various ASX queries.
ASIC has expressed concerns that TTC has no directors ordinarily residing in Australia and no company secretary; and that TTC’s external auditors found irregularities in bank records that they received from the company’s China-based management.
The corporate regulator also notes that TTC failed to provide authorisation to its external auditors for them to obtain independent confirmation of TTC’s cash balances directly from the Chinese banks and that funds raised from investors may have been improperly diverted or dissipated.
ASIC’s application has been listed for hearing before the Federal Court at Melbourne on 22 February 2019.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.