Shares in the troubled training provider Vocation are soaring after the company reached an agreement with the Victorian government to repay $7.258 million.
The state’s Department of Education and Early Childhood Development last year withdrew about $20 million in funding after an audit criticised the quality and practices of Vocation’s then business units BAWM and Aspin.
Today, the company announced it will repay an amount of $7.258 million to the department over the next 18 months.
Vocation is the subject of several class actions including one being run by Maurice Blackburn on behalf of shareholders who allege misleading statements and material omissions in the prospectus before the IPO.
CEO Stewart Cummins, who was appointed late last year, is restructuring the company and is expected to re-brand the business soon.
The company’s shares jumped today by more than 17% to $0.115.
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