Aspis to appeal to Cyprus’ Supreme Court against fines by CySEC

Aspis Holdings Public Company (ASP) announced that it will appeal to the Supreme Court against the administrative fines imposed by the Cyprus Securities and Exchange Commission (CySEC).
The Company believes that it is not treated equally by the Commission, since similar requests for an exemption from the Pubic Offer were faced positively to third CSE companies, while the Company's requests were faced negatively with no explanations. Specifically, Leda Investments Ltd had secured an approval by the General Meeting for the issue of new shares in order to buy the White Moon Center in Engomi, which hosts the Group's premises, and to undertake the management of a property of more than 17,000 m2 in Evia. As a result of the issue, the direct and indirect shareholding of the Group's companies in Leda would increase to more than 70%.
As a result, the Company submitted an application to the SEC for an exemption from the obligation to submit a Public Offer for the acquisition of 100% of Leda, pursuant to the provisions of the Law. The Commission rejected the application, insisting in the submission of a public offer that what it could only achieve was the possible acquisition of 100% of Leda and its delisting from the CSE.
As for the other administrative fines, the Company granted to the SEC all necessary written and verbal representations supported by arguments, which again were not accepted.
In the case of the Public Offer for the acquisition of Athos Diamond Center Public Co Ltd, the Commission had been informed that the previous major shareholder of Athos refused to sign assurances that would protect the shareholders that would stay in the Company from possible legal actions that could emerge in the future. However, the Commission not only ignored the Company's explanations but it punished it. In the end, the acquisition was finalized normally, since the Company secured the assurances for the protection of the shareholders' interests. It is difficult to understand why the Commission ignores the issue and punishes the Company instead of helping it to protect the shareholders' interests.
As regards to the report of the international credit rating firm, Fitch, the Company gave a different interpretation than the Commission. The Company neither misled nor abused the market, as the Commission supports. The Commission referred to a market manipulation although no transaction had been made by the Company, the Directors or other persons related to the Company during the period.
The Company, which is one of the most active in the market, with direct and indirect shareholding in many CSE company, is constantly questioned by the SEC, which does not accept its justified requests.
The Commission's actions clash with the Constitution of the Republic and the Contract of Rome, since the persons appointed are not independent.
It is not the first time that the Company is forced to appeal to the Supreme Court for its treatment by the authorities.
Respecting its 4,000 Cypriot shareholders and the hundreds of families that depend on it directly or not, will claim its rights once again and it believes that it will be vindicated.