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Myriam Robin

Retail Food Group having a lend

Myriam RobinColumnist

Is Retail Food Group serious?

From Friday's open, the company's shares spiked 71 per cent in three days. But in response to an ASX query on Monday, it claimed there was no new information investors should be aware of, pointing weakly to a positive article with its new executive chairman Peter George on

On Monday, the share price surged ever higher on strong volumes. By Tuesday, it emerged the company had on July 1 agreed to grant limited due diligence to Soliton Capital, whose recapitalisation proposal, if proceeded with, would inject $160 million into the flailing franchisor. Given its market cap of just $36.6 million, that's pretty damned material.

Not that RFG, even still, saw it that way. It wasn't "information that a reasonable person would expect to have a material effect on the share price or value of its securities". In what universe?

Further to its defence, the company added that "its share price did not move materially following release of the information". But that's because the news had been baked into the price by then, after two separate reports of Soliton's interest. Reports all the more credible for explaining the price spike of proceeding days.

Jessica Shapiro

Is Retail Food Group serious? Jessica Shapiro


So Retail Food Group denied any activity, confirmed it after the horse had bolted, and finally claimed redemption in the lack of reaction to its belated admission.

ASIC is reportedly looking into the situation, as it should. We doubt we've heard the last of it.

Myriam Robin

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