ASSOCIATED PERSON: Ken Pedlar
ADDRESS: Mount Maunganui
REASON FOR WARNING: Illegal share offer
The Securities Commission warns people who have been invited to invest in Inertialess Drive ZPE (2010) Limited that its share offer is illegal.
The Securities Commission has banned a document offering shares in Inertialess Drive ZPE (2010) Limited. The offer is illegal because no prospectus has been registered, and there is no investment statement.
The company is based in Mount Maunganui and Ken Pedlar is its sole director and shareholder.
"In New Zealand, most offers of investments must have a registered prospectus and an investment statement," the Commission's Chairman Jane Diplock says. "These documents are important to allow people to make an informed decision about investing."
The Commission understands that offer documents were sent to people who responded to advertisements by the company in the Bay of Plenty Times in December 2009.
The Commission warns people about buying securities that do not have the required offer documents.
"Under New Zealand law anyone who has subscribed for securities in offers that are illegal is entitled to have their money refunded," Jane Diplock says.
The Commission had previously, in 1998, banned advertising for shares by Inertialess Drive Technologies (1995) Limited (now liquidated) because there was no registered prospectus. In 2000 the Commission also banned advertising for shares in Inertialess Drive Corporation Limited for the same reason. Mr Pedlar was involved in both these companies. The advertisements in the Bay of Plenty Times are targeted at former shareholders of these companies.