The Australian Securities and Investments Commission (ASIC) has applied to the New South Wales Supreme Court for the appointment of provisional liquidators to Semantic Software, an artificial intelligence development company based in North Sydney.

ASIC alleges that Semantic:

- has failed to lodge financial statements with ASIC, failed to hold annual general meetings and failed to keep accurate financial records and minute books;

- is insolvent or likely to become insolvent; and

- has issued shares without compliance with the Act and has issued shares to investors with a share buy-back guarantee in circumstances where the company did not have sufficient funds to meet that obligation.

The company has developed its Semantic Computing Platform, Semantiro, which it describes as a fundamental building block to achieving a complete cognitive environment.

This platform promises the ability to enrich the semantics of data collected from disparate data sources, and enables a computer to understand its context and meaning. A computer can then undertake much of the heavy lifting usually performed by data analysts.

ASIC seeks through its application:

- the appointment of provisional liquidators to Semantic;

- orders requiring the provisional liquidators to provide a detailed report to the Court and ASIC that sets out, among other things, Semantic’s financial position so the Court can consider whether it ultimately ought to make orders to wind up the company;

- orders preserving Semantic’s assets; and

- orders restraining Semantic, a director and a former director of Semantic, from receiving or soliciting funds from investors and from advertising, promoting or marketing fundraising for Semantic.

ASIC’s application has been listed for an initial hearing in the New South Wales Supreme Court in Sydney on Monday, 28 June 2021.

ASIC’s investigation into Semantic is continuing. Any person who is concerned they have invested with Semantic can contact ASIC via email at semantic.investor@asic.gov.au.