ASIC freezing orders hurting Sino

Sino Australia Oil and Gas (SAO) says it is losing $330,000 every month due to freezing orders enforced by the Australian Securities and Investments Commission, according to The Australian.

The ASX-listed firm, which is based in China, saw its shares suspended in February after it failed to release its accounts by the market’s deadline, while the HSBC bank account of Sino was frozen by ASIC as it looked into a move from Mr Shao to transfer $7.5 million to Chinese accounts.

The Sino claims come after the recently listed company fell short on profit pledges, with former Sino director Wayne Johnson saying chairman and majority shareholder Shao Tianpeng had offered promises on profit to the board that weren’t met in the final reports.

“The market was told it was on forecast because that was what the board was told. I was on CNBC on December 12 stating that we had made our bloody numbers,” he told The Australian.

“I am surprised that the numbers that have been produced because they are substantially and negatively different to the financial information produced to the board in December 2013.”