Price is Right Ltd is a public company. The company operates a successful chain of supermarkets. Price is Right issued a prospectus in which it offered ordinary shares to the public. The purpose of the issue was to finance the expansion of Price is Right into selling pharmaceuticals. The prospectus promised that the new venture will be very profitable. The prospectus also stated that Price is Right had already obtained government approval to sell pharmaceuticals in their supermarkets, under the supervision of pharmacists. This was not true. In fact the company had applied for permission to sell pharmaceuticals and was still waiting for approval from the relevant government department.