A$12 million Morocco bid triggered ASX disclosure review

ASX questions Rubicon’s Morocco disclosure timeline

Rubicon Water Limited (ASX:RWL) has confirmed that the selection of a joint venture bid incorporating approximately A$12 million of its technology for a major irrigation modernisation project in Morocco was information a reasonable person would expect to affect its share price.

The admission comes in the company’s response to an ASX Aware letter issued after an unusually sharp move in the stock. Rubicon’s shares rose from a closing price of $0.18 on 17 September to an intraday high of $0.35 on 25 September, before climbing from $0.290 to $0.385 after the company’s project announcement was released on 28 September.

Rubicon says it learned of selection after publication

Rubicon said it was not a member of the joint venture, but had partnered with one of its members to submit the tender in August. It said the Moroccan Government agency ORMVAT published the successful tenderer on the country’s official procurement portal at about 1.30pm Moroccan time on Friday 25 September, equivalent to 10.30pm in Melbourne.

A local employee alerted Managing Director Bruce Rodgerson at about that time, according to the response. Rodgerson informed other members of the Disclosure Committee on Saturday while arranging a meeting for Monday morning. Rubicon said it had not known the result, or that an announcement was imminent, before the procurement portal publication.

Technical issue delayed Monday announcement

Because the information emerged late on Friday night, Rubicon said it was not possible to release it immediately. The company circulated a draft announcement over the weekend and convened its Disclosure Committee at 9.00am on Monday 28 September, before trading began.

Rubicon said it intended to lodge the announcement before the market opened, but technical issues pushed the release to 10:01:44am, four seconds after 10.00am. The company considers that it acted promptly and without delay, and confirmed it remains compliant with ASX Listing Rule 3.1.

Earlier price-query response becomes central issue

ASX’s letter also focused on Rubicon’s response to a price query released on 25 September, in which the company said it was unaware of information that could explain the trading and confirmed compliance with continuous disclosure rules. Rubicon now says it was not aware of the Morocco selection when that response was provided, although it knew the unnamed joint venture bid existed and had previously included it among significant opportunities considered close to contracting.

The response records Rubicon’s position, not a finding by ASX that the company complied with the rules. The key unresolved issue for investors is therefore less the four-second technical delay than what happens next: whether the Moroccan selection progresses into a formal contract, and what portion of the project’s stated technology value ultimately translates into Rubicon revenue.