HITIQ Limited has disclosed a delayed cleansing notice and a regulatory hiccup involving the late quotation of listed options, prompting a court application to resolve the issue.
- Delayed cleansing notice lodged after share issue in January 2026
- Voluntary escrow agreements arranged to mitigate regulatory breach
- Late quotation of 22 December 2025 listed options deemed void without court order
- Company to seek court approval to extend quotation period and avoid refunding subscription funds
- Voluntary suspension of affected options requested during legal proceedings
Background on the Cleansing Notice Delay
HITIQ Limited (ASX: HIQ), a company specialising in concussion management technology, has revealed it failed to lodge a cleansing notice within the mandatory five business days following a share issue on 19 January 2026. This administrative oversight triggered a trading halt and subsequent investigation by the company.
Despite the delay, HITIQ confirmed that none of the shares issued were sold in breach of the Corporations Act, and all recipients of the shares have agreed to voluntary escrow arrangements lasting up to 12 months or until a cleansing prospectus is released. This move aims to reassure investors and regulators that the shares will not be traded prematurely, mitigating potential market disruption.
The Listed Options Quotation Issue
More significantly, HITIQ identified a compliance issue concerning the quotation of certain listed options issued on 22 December 2025. Under the Corporations Act, securities issued under a prospectus must be admitted to quotation within three months of the prospectus date. HITIQ’s rights issue prospectus was dated 15 May 2025, requiring all securities to be quoted by 15 August 2025.
While most securities were admitted on time, 16,135,199 HIQOA options issued to GBA Capital Pty Ltd and 6,181,818 options issued to GBA Capital and SP Corporate Advisory Pty Ltd were not admitted within this period. This delay technically renders the issue of these options void, obliging HITIQ to refund subscription funds unless a court grants an extension of the quotation period.
Next Steps and Market Implications
HITIQ plans to apply to the court for an order extending the quotation period to rectify the issue. Meanwhile, the company will seek a voluntary suspension of the affected options to prevent trading while the matter is resolved. This legal process introduces uncertainty for holders of these options and could impact investor confidence in the short term.
The company’s transparent disclosure and proactive measures, including voluntary escrow and court application, demonstrate a commitment to regulatory compliance and shareholder protection. However, the outcome of the court application will be pivotal in determining whether HITIQ can avoid financial repercussions and reputational damage.
Bottom Line?
HITIQ’s regulatory compliance challenge now hinges on court approval, with market confidence and option values in the balance.
Questions in the middle?
- Will the court grant HITIQ’s request to extend the quotation period for the listed options?
- What financial impact might arise if the options are deemed void and subscription funds must be refunded?
- How will this compliance issue affect investor sentiment and HITIQ’s share price in the near term?