G8 Education Says Charges Against Former Employee Not Likely to Have Material Impact

MT Newswires Live
14 Jul

G8 Education (ASX:GEM) said it became aware that one of its former employees had been charged with offenses involving children shortly after the matter became public through media reporting on July 1, which "shocked and distressed" the firm, however it assessed that the matter was not likely to have a material impact on its financial position and performance, per a Monday Australian bourse filing.

The firm said in its response to an ASX Aware letter that it took into account that charges related to conduct by a former employee at one G8 Education center, with potentially another four impacted, out of a total of 399 centers. It did not anticipate that the Information to materially affect occupancy, regulatory approvals, or other financial metrics.

Its share price fell by around 20% in the period between close on July 1 and close on Friday. But at the time, it concluded that the information was not information that a reasonable person would expect to have a material effect on the price or value of its securities.

It said it considers that trading in its securities is likely influenced by several factors, including "uncertainty over potential changes to the regulatory landscape and negative public sentiment towards the childcare sector generally."

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