Antonio Stella, of Donvale, Victoria, has been sentenced to 11 months imprisonment and ordered to pay a penalty of $225,447.24 for insider trading in relation to medicinal cannabis company, Cann Group Limited (Cann Group).
He is to be released forthwith upon entering a recognisance in the amount of $1,000 to be of a good behaviour period of 12 months.
On 1 October 2025, Dr Stella pleaded guilty to two counts of insider trading while in possession of information about an upcoming Cann Group share placement before it was publicly announced in July 2021.
The medical cannabis company's share placement was intended to raise $20 million at a discount to the prevailing share price.
ASIC alleges that between 19 July 2021and 20 July 2021, Dr Stella sold 2,561,286 Cann Group shares for $954,886, while in possession of the inside information.
Cann Group announced the share placement on 26 July 2021.
Dr Stella then reacquired 2,090,909 shares at a discounted rate through the placement.
The trading activity resulted in Dr Stella making a $204,490 profit and avoiding losses of $20,986.
ASIC Deputy Chair Sarah Court said, 'If someone unfairly makes a gain from insider trading, other investors are losing. Financial markets can only operate fairly if information is available to all investors at the same time.
'This crime affects all Australians who invest in the share market and ASIC will continue to take strong action to combat insider trading.'
His Honour, Judge Allen, balanced the seriousness of the offending against mitigatory factors including Dr Stella's cooperation, ill health, age, exemplary character and remorse and noted that the sentence imposed was significantly lower that it would have been but for these factors.
His Honour also added that, but for the consent to make a pecuniary penalty order, he would have increased the sentence for Dr Stella to 12 months for each charge and but for his early guilty plea he would have imposed 16 months for each charge.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) after an investigation and referral by ASIC.
Background
A share placement is a way for a company to raise funds by issuing new shares.
Dr Stella was indicted on insider trading charges on 7 March 2025 (25-032MR).
