The iSignthis Ltd (ASX: ISX) share price dropped 3.5% after making an announcement.
iSignthis is listed on the ASX and Frankfurt Stock Exchange. It provides remote identity verification and payment authentication combined with e-money, transactional banking, IBAN issue and payment processing capability. Its products and businesses are iSignthis Paydentity, ISXPay, UAB Baltic Banking Service and Probanx Information Systems.
Here’s What Happened Today
iSignthis formally responded today to a report from Ownership Matters that raised some concerns about its ownership, related party transactions and disclosures.
The fintech business defended itself by saying that the conditions for the conversion of its performance rights were set out in the prospectus and each of the three performance targets were independent and based on iSignthis achieving revenue of different specified amounts.
Each target only triggered a third of the performance rights. One of the headlines from this debacle was that the performance rights were only met by $1,347 excluding R&D grants and interest income.
Target A had a revenue target of $2.5 million, which was exceeded by over $3 million.
Target B had a revenue target of $3.75 million, which was exceeded by $1.76 million.
Target C was the one that was exceeded by $512,057 – or $1,347 excluding the interest and grants.
iSignthis also explained why its reporting period was changed, so that it streamlined its audit and reporting requirements as a European financial entity and to help match the auditing periods between Australia and Europe.
Other points that iSignthis defended itself on were the ownership of its shares by directors, it re-iterated that it made 22 announcements about its revenue progress and it explained the patent situation.
iSignthis said that it has written to Ownership Matters seeking clarification and is considering various options and will update the market as appropriate.
I’m not sure if this will be the end of it, but it’s certainly an unwelcome cloud over the business. For potentially good returns I’d rather buy the growth shares in the free report below.
2020: 3 stocks to buy for the long run
Amidst the confusion, some researchers value the entire cloud computing market at approximately $US210 billion. If you ask me, it seems clear as day that this HUGE market is only going to get bigger in 2020 and beyond.
Our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back.
Claim your FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.
Our report is 100% free and unlocks hundreds of hours of bonus content.
Disclaimer and warning: The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms of Service and Financial Services Guide before using this website.
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.