Faron fined 30,000 euros for violating stock exchange rules

The Disciplinary Board of the Helsinki Stock Exchange has ordered Faron Pharmaceuticalsille A fine of EUR 30,000 for violating the rules of the stock exchange.

According to the release, Faron Pharmaceuticals had not followed the rules of the stock exchange when announcing the takeover of its bank accounts in February, the change of its CEO in April and its share issue in June 2024.

According to Nasdaq’s disciplinary board, the company had not published information in a timely manner as soon as possible.

In addition, the board assessed whether the interview given by the company’s CEO in May 2024 followed good securities market practice.

According to the Disciplinary Board, an overly positive picture of the probability of success of the company’s drug development was given in the interview, and thus misleading information, even though the interview had brought up uncertainty factors related to drug development and the company’s products.

CEO of Faron Juho Jalkanen comments on the potential of Faron’s drug prototype bexmarilimab Published in Kauppalehti and Arvopaper in an interview in May 2024.

The Disciplinary Board considered the statements regarding the timing and uniqueness of the investment to be inappropriate. In its decision, it considered that Jalkanen’s conduct in the interview was not in accordance with good securities market practice.

On the other hand, the board considered that the violations were partly minor. Considering the company’s financial situation, the disciplinary board imposed a disciplinary fee of EUR 30,000 on the company as a sanction.

The members of Nasdaq’s disciplinary committee are legal and financial experts independent of Nasdaq Helsinki. A reminder is given to the company for minor violations, and serious cases are dealt with by the disciplinary committee.

Possible sanctions for violations are a reminder, a disciplinary fee or removal from the list.

Faron answers

Faron issued a statement quickly after the decision.

The company justified that it prioritized simultaneous information on the Helsinki and London markets. According to it, it has been a practice to publish information on both markets at the same time after listing in Helsinki in 2019. The company has had a listing in London since 2015.

According to Faron, the cases that were evaluated by the disciplinary board were separate from each other and the only recurring topic of the decision was the timing of announcements on the London and Helsinki stock exchanges, because the announcement times are not the same in both markets.

According to the company, it must allow information to be published simultaneously to both markets in accordance with key rules, so that it can treat its shareholders equally.

According to Faron, the disciplinary committee of the Helsinki Stock Exchange considered that the information should be disclosed to the market without delay, regardless of the possibility of simultaneous information in London. The company says that it intends to consider the possibilities of meeting the requirement and hold a dialogue with the stock exchanges about the matter.

Faron says that in all its activities it strives for accurate, clear and timely communication and that it follows the rules required for it.

The penalty payment does not have a significant impact on the company’s operations, Faron’s press release states.