(Alliance News) - TruSpine Technologies PLC on Thursday noted a GBP215,000 fine from the Aquis Stock Exchange Ltd.

The London Gatwick Airport-based medical device company intends to appeal the fine.

On Wednesday, Aquis Stock Exchange said that it had sanction TruSpine with a fine. This includes GBP20,000 to be invoiced immediately; GBP30,000 deferred until the earlier of the completion of a fundraise or the period ended 12 months from the publication of the penalty notice; and a GBP165,000 balance.

It said that TruSpine has breached the rules of the exchange.

At the start of January, TruSpine had announced GBP200,000 bridging loan facility alongside a non-binding letter of intent for GBP2.4 million in staged equity funding over three tranches of GBP800,000. It noted that the GBP200,000 would be available immediately.

Then, at the start of February, the company said its loan transfer had experienced delays.

Consequently, Aquis said: "the market had a false impression of the company's financial position from 3 January 2023 until 1 February 2023."

Then, on February 28, TruSpine announced that it had secured a new loan of GBP200,000 from a third party.

Two months later, at the end of April, a charge over the company's assets was filed at Companies House in favour of the Hub 2021 Ltd, the entity which had provided the loan announced on February 28. No reference to the charge was made in the company's announcement of February 28.

On May 9, TruSpine released a correction to its announcement of February 28 adding details of the charge over its assets

As a result of the failure to announce the charge at the time of entry into the loan, Aquis said the market had a "false impression of the company's financial position and risk profile" between February 28 and May 9.

"The company was able to provide only limited evidence (such as board minutes or emails) in support of its representations to Aquis Stock Exchange. This was particularly evident in respect of any board discussion approving the provision of the security over the company's assets," Aquis said.

By Sophie Rose, Alliance News reporter

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