Helsinki, June 5, 2026 - The Disciplinary Committee of Nasdaq Helsinki Ltd has imposed a fine of EUR 30,000 to Faron Pharmaceuticals Ltd (trading code: FARON) due to the breaches of the rules of Nasdaq Helsinki Ltd ("the Exchange").
Faron Pharmaceuticals Ltd ("the Company") breached the Nasdaq First North Growth Market Rulebook for Issuers of Shares ("Rules") of the Exchange" when disclosing the seizure of its bank accounts in February, the change of its CEO in April and its share issue in June 2024. The Disciplinary Committee concluded in its decision that the Company did not disclose the information in timely manner as soon as possible.
In addition, the matter concerned whether the statements of the CEO given in an interview in May 2024 were contrary to good securities market practice. Disciplinary Committee noted that although the interview highlighted uncertainties related to drug development and the Company's products, the probability of success in drug development was portrayed in a manner that was, in part, overly positive and thus provided misleading information. Furthermore, statements regarding the timing and uniqueness of the investment were considered inappropriate. The Disciplinary Committee stated in its decision that the Company's CEO's conduct during the interview was not in accordance with good securities market practice.
Furthermore, the Disciplinary Committee stated that the Company's numerous and consecutive, yet separate, breaches of the Rules have in themselves been material and have concerned the fundamental obligations of a listed company, and failure of these may adversely affect the position of investors as well as the reliability of the securities markets and the operations of the Exchange. On the other hand, the Disciplinary Committee has considered that the violations have, in part, been minor. Taking into account the Company's financial situation, the Disciplinary Committee considered that a disciplinary fine of EUR 30,000 should be imposed on the Company in this case as a proportionate sanction.
The Disciplinary Committee also dismissed two other alleged rule violations asserted by Market Surveillance of the Exchange.
The decision of the Disciplinary Committee is available:
https://www.nasdaq.com/market-regulation/nordic/helsinki/disciplinary/decisions-sanctions
Surveillance at Nasdaq Helsinki and the Disciplinary Committee
The surveillance unit of Nasdaq Helsinki Ltd investigates all suspected breaches of regulations. Minor breaches will result in reprimand to the company, whereas more serious cases are referred to the Disciplinary Committee. The members of the Disciplinary Committee are legal and financial experts independent of Nasdaq Helsinki Ltd. The members of the Committee are chair Mr. Ari Kantor, Justice, Supreme Court of Finland; Deputy chair Mrs. Helena Kontkanen, L. of Laws and trained on the bench; and members Mr. Kari Hietanen, Master of Laws; Mrs. Tarja Ollilainen, M.Sc. (Econ. & Bus. Adm.); and Mr. Sami Torstila, D. Sc, M. of Laws, Associate Professor. The sanctions may be a reprimand, a fine or a delisting. For more information about the Disciplinary Committee please visit
https://www.nasdaq.com/market-regulation/nordic/helsinki/disciplinary
Nasdaq Nordic Foundation
Established in 2006, the Foundation supports financial markets through scientific research. The Nasdaq Nordic Foundation receives paid fines from breaches by members or listed companies in Nasdaq Helsinki, Nasdaq Copenhagen, and Nasdaq Stockholm. The Foundation's mission is to promote scientific research and other initiatives related to financial markets in Finland, Denmark, and Sweden, with the goal of increasing competence and competitiveness for the financial markets in these countries.
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