6 May 2010

St Laurence investors warned over debenture offer

3:02 pm on 6 May 2010

The Securities Commission is warning investors in failed finance company St Laurence to be wary of an offer by the Stock and Share Trading Company to buy their debentures for 8 cents in the dollar.

St Laurence was put into receivership last week, owing $245 million to 9,000 investors.

Commission chairman Jane Diplock says offers sometimes try to exploit doubts about the value of debentures and investors should be wary when an unsolicited offer is made for well below face-value.

The commission is also warning of a company called 9999 Gold Mining Corporation, which is offering securities without a registered prospectus or investment statement.

The company is forecasting a 100% return on investments.