Australian sandalwood forestry company Quintis listed on the Australian Stock Exchange in 2004. In March 2017, it was attacked by short-seller Glaucus Research alleging that the company had made false statements, was a fraud and would go bust. The report prompted a 25% decline in Quintis' share price. In further exchanges, Glaucus highlighted how Quintis had made bullish announcements on new contract values, such as the Nestle-owned Galderma contract, which never lived up to expectations. Further to additional exchange queries, in May 2017, Quintis disclosed that the Galderma contract had been cancelled but the board had not been made aware. This prompted a collapse in the company's share price followed by credit rating downgrades. Share trading was suspended at the company's request, never to resume. In August 2017, the company defaulted and it was delisted in August 2019. In June 2018, the Australian Securities and Investments Commission (ASIC) launched civil proceedings against the company's former founder for failing to disclose that key contracts with Galderma had been terminated. As such, the short-seller allegations about misleading public statements were proven but the fraud allegations were not.

Last updated March 2022

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