Are Cellnet In Breach Of ASX & ASIC Regulations?
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Despite losing key accounts loss making listed IT distributor, Cellnet, has made no public announcement to shareholders regarding its losses of key brands including Sony, Apple, Kyocera or Neoware. Now the Company is refusing to return calls on the issue.

After reporting that it anticipates a $1.6 million dollar loss Cellnet is now in strife again this time for failing to report the loss of leading accounts including Sony, Apple, Kyocera an Neoware.
In a search of announcements Cellnet has made to the ASX since May of this year, SmartOffice was unable to find any mention of the fact it will no longer be distributors for these accounts. According to the Australian regulators the issue now boils down to the value of the accounts to Cellnet..

An ASIC spokesperson said Chapter 6.CA of the Corporations Act, and the ASX Listing Rule 3.1, require listed companies to disclose any information that is likely to impact the company share price by between 10 and 15 percent .

Sony switched distributor for its headphone product range from Cellnet to Crest Electronics in June this year and Apple ended its six year relationship with Cellnet last month.

Thin client vendor Neoware switched to Infotronics as its new distributor a month before and printer vendor Kyocera dropped Cellnet and Dicker Data from its distributors list earlier in the year.

In the case of the recent business losses suffered by Cellnet, whether public notification is required depends upon the percentage of revenue the lost contracts contributed. SmartOffice was unable to obtain comment from Cellnet regarding the size of the lost contracts.

A round of senior staff changes has also hit Cellnet in recent times. Former CEO and managing director, Adam Davenport quit in late May, followed by general sales manager, Martin Bicknell, though these were reported to the ASX.