The Australian Securities and Investments Commission (ASIC) has confirmed Dr Antonio Stella has been sentenced to 11 months’ imprisonment and ordered to pay a penalty of $225,447.24 after being found guilty of insider trading.
Dr Stella pleaded guilty to two counts of insider trading (1 October 2025) while in possession of information about an upcoming Cann Group Limited (Cann Group) share placement before its public announcement on 26 July 2021.
According to ASIC, the share placement in the medicinal cannabis company was intended to raise $20 million at a discount to the prevailing share price.
The regulator alleged that Stella sold 2,561,286 Cann Group shares for $954,886, while in possession of the inside information between 19 July 2021 and 20 July 2021, and subsequently reacquired 2,090,909 shares at a discounted rate through the placement.
He was indicted on insider trading charges on 7 March 2025 and is set to be released upon entering a recognisance in the amount of $1,000 to be of a good behaviour period of 12 months, ASIC stated.
As a result, Stella was able to make a $204,490 profit and avoided losses of $20,986.
Sarah Court, ASIC deputy chair, said financial markets can only operate fairly if all information is available to investors at the same time.
“If someone unfairly makes a gain from insider trading, other investors are losing,” Court added. “‘This crime affects all Australians who invest in the sharemarket and ASIC will continue to take strong action to combat insider trading.”
His Honour, Judge Allen, noted that Stella’s imposed sentence was "significantly lower” than usual had it not been for the doctor’s cooperation, ill health, age, “exemplary character” and remorse.
