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Financial Markets Authority cancels FMP Medical Services prospectus

Wednesday 16th October 2013

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The Financial Markets Authority has cancelled a prospectus offering shares in FMP Medical Services, saying the offer is false or misleading, the first time the regulator has taken such an action.

FMP was seeking investors to set up a chain of renal dialysis clinics in New Zealand. The FMA first prohibited allotment of shares in the company to allow it to review the offer when the prospectus was registered in August. It said in a statement today it is cancelling the offer document in the belief it is likely to deceive, mislead or confuse.

"FMP failed to effectively communicate the risks of investing, including its plans to substantially dilute the value of any public investment, and its lack of any real business plan," Simone Robbers, the authority's head of primary regulatory operations, said in the statement. "Offer documents must not be false or misleading and must include all material information to assist investors when they are deciding whether or not to invest. We could not allow FMP's offer to go to market."

The authority's ruling means FMP must stop the offer, cannot allot any shares and must immediately repay any investors who have subscribed to the offer.

FMP's sole shareholder and director is Antone Thomas Pedras, who is also known as Christopher or Chris Pedras, the authority said.

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