iSignthis just went tit-for-tat with the ASX, next submission due by Friday

Payments company iSignthis (ASX:ISX) took aim at the ASX yesterday over its ongoing suspension from trade.

The company highlighted the involvement of ASIC, the corporate regulator, in the ASX’s suspension notice back on October 2.

iSignthis said ASIC had confirmed in writing that it “did not request the suspension of ASX securities”. And in turn, the company wanted to know who did.

“It has taken us more than a month to get an answer to a simple question about who actually asked for the suspension of ISX shares,” iSignthis said.

The sharply worded statement drew a quick response from the ASX, which referred back to its initial statement as evidence that ASIC was not involved in the decision to suspend ISX shares.

The ASX said it has “at no time represented to ISX or anyone else that the suspension of ISX’s securities on 2 October 2019 was at the direction of ASIC”.

Rather, it said the decision was made in consultation with the corporate regulator and the ASX “understands that ASIC’s enquiries are ongoing”.

On October 28, iSignthis responded to a list of 17 questions from the ASX, which included a breakdown of monthly revenues in the period from April to September 2018.

The report from industry watchdog Ownership Matters, which originally sent iSignthis shares into a tailspin in late-November, pointed to a sharp increase in trading activity in the period to June 2018, which in turn triggered significant performance bonuses for the company’s executive team.

Shares in the company continued to be held in suspension following the response. The ASX has now sent the company another round of questions, with responses due by this Friday (November 15).

According to the AFR, iSignthis managing director John Karantzis sent an email to shareholders stating that despite the ongoing suspension the company was still growing revenues and “will likely be in a position to deliver a profit this financial year”.

Shares in iSignthis, which runs the patented Paydentity know-your-customer (KYC) platform for B2B payment verification, rose from around 20c in January to an intraday high of more than $1.50, before going into suspension on October 2 at $1.07.

ALSO READ:
17 questions: iSignthis responds to ASX, shares remain in suspension
iSignthis is still in the wars after a rough week