The Australian takeovers panel has found that Alara Resources (ASX: AUQ) did not sufficiently justify its fundraising needs or explore alternative options, issuing a cost order for AU$2,400, according to a Monday release by the panel.
The Panel found the company's offer prospectus lacked adequate disclosure regarding its financial position and funding requirements, the filing said.
Additionally, the delay in Al Tasnim Infrastructure disclosing its substantial holding in the company was found to be in breach of the Corporations Act, the filing added.
The Panel emphasized that Alara must ensure future rights issues comply with legal requirements and is expected to seek new legal counsel, the company said.
Shares of the company fell 5% at market close.
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