ASIC has launched legal action against biotechnology company Holista CollTech over alleged misleading statements, including claims about use of its spray against coronavirus.
The Australian Securities and Investments Commission has launched legal action against biotechnology company Holista CollTech over alleged misleading statements, including claims about use of its spray against coronavirus.
Proceedings are also being taken against Holista chairman Rajen Manicka.
Holista is focused on developing natural health foods and associated products, such as its alcohol-free sanitiser spray called NatShield.
In a video uploaded to YouTube in February last year, Dr Manicka claimed the NatShield spray killed the coronavirus “involved in the current Wuhan outbreak”, ASIC said.
ASIC alleged this was a misleading statement since the product hadn’t been tested against COVID-19 until at a later date.
The regulator has also accused Holista of making an incorrect announcement to the ASX on April 9 last year, claiming it had received a NatShield purchase order from US-based Health Therapies amounting to $3.8 million.
Holista said delivery was expected between April and June.
ASIC alleged those orders were not placed, noting Holista's update to the market in July that stated its expected revenue from NatShield sales would be only $500,000.
The regulator also alleged Holista made a misleading statement earlier that year to say it had signed a term sheet with another company to co-develop a sanitising nasal balm.
ASIC claimed the agreement was signed in April, rather than in February as stated.
Deputy chair Sarah Court said ASIC continued to focus on suspected misleading statements made to the market during the pandemic.
“In this case, we are concerned by the allegedly misleading claims, made when there were concerns about a potential pandemic, that NatShield was effective against the virus later known as COVID-19 when it had not been tested against that virus,” she said.
ASIC is seeking declarations and pecuniary penalties from the Federal Court in Western Australia against Holista and Dr Manicka, as well as an order to ban the chairman from managing a corporation.
In its 2020 annual report, Holista cited Perth businesses Stantons International and Edwards Mac Scovell as its auditor and solicitor.
Holista requested a trading halt today and said it would update the market before Friday.
