Holista to defend ASIC allegations

Listed biotechnology company Holista CollTech says it will defend allegations made by ASIC, including “misleading” claims about the effectiveness of its sanitiser spray against COVID-19.

Yesterday, the Australian Securities and Investments Commission said it had commenced proceedings in the Federal Court in WA against Holista CollTech and its chairman, Rajen Manicka, over misleading statements related to its alcohol-free NatShield sanitiser.

ASIC alleged a statement made by Dr Manicka in a video uploaded to YouTube in February last year claiming the NatShield spray killed the coronavirus “involved in the current Wuhan outbreak” was misleading, since the product hadn’t been tested against COVID-19 until later date.

The regulator also accused Holista of making an incorrect announcement to the ASX about a NatShield purchase order amounting to $3.8 million.

Holista – which is focused on developing natural health foods and associated products – says it has appointed lawyers to defend the claims.

Mr Manicka has also appointed lawyers.

“There is no allegation in the proceedings that the company has engaged in any misleading conduct or failed to comply with its continuous disclosure obligations since July 2020,” Holista said in an ASX announcement today.

“The company does not expect the litigation to interfere with its operations.”

Holista said it remained focused on its growth plans, including for its range of disinfectant products.

The company emerged from a trading halt today, with its shares closing down 3 per cent to 6.4 cents.