Isignthis’ John Karantzis pledges to continue to fight the ASX… from Cyprus
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As Isignthis (ASX:ISX) prepares to enter another year in a legal fight with the ASX, John Karantzis pledged to continue it despite his relocation to Cyprus and resignation as managing director.
Isignthis, which was once valued as high as $1.9 billion, has a reg-tech payments network that provides compliance and know-your-customer (KYC) services for customers to comply with anti-money laundering laws.
It has been suspended from the ASX since October 2019 amidst ASX and ASIC inquiries into its business operations. Isignthis has in turn launched a legal battle against the ASX alleging it failed to give it procedural fairness in suspending it from quotation.
The company has on one-hand made attempts to move on with plans to list itself – or at least its European subsidiaries – on a Northern Hemisphere exchange. This was first agreed on by shareholders in July 2020 and reiterated to them in ISX’s most recent quarterly.
But Isignthis has still pledged to fight the ASX even though Karantzis will be stepping down to a non-executive director board.
Karantzis has relocated to Cyprus in a move the company has said is to focus on the recently demerged European businesses – and one the AFR reports was delayed due to a dispute with the tax office.
And Karantzis told ASX shareholders he wouldn’t be walking away from the fight.
“Whilst I’m stepping down as CEO and managing director, I remain committed as a non-executive director to the company and its 10,000 plus retail shareholders,” he said.
Stepping into his position on an interim basis will be Tim Hart but the company has promised to review its structure in the new year.
In its most recent quarterly, the company reported net assets of ~$10.2 million post the demerger.
While its operating activities were cash flow positive, its legal costs are expanding with €1,092,617 spent in the first half of the 2021 calendar year and €902,723 spent in the third quarter.