Tech Top 5: EML is still dealing with pesky regulation in Ireland, and Sensera loses key customer
Link copied to
Here are the biggest tech winners in early trade, Friday October 8.
Payments platform EML dropped 13.81% today after releasing an update on their Ireland regulator problems last night after markets closed.
The Central Bank of Ireland (CBI) has previously flagged regulatory concerns with EML’s subsidiary, PFS Card Services (PCSIL) which was previously regulated by the UK but post-Brexit had to change its licences to an EU-based jurisdiction.
Earlier this year, the Irish regulator saw some large transactions going through those programs, so they carried out an audit on PCSIL to get greater clarity on the business.
And as the CBI deemed PCSIL transactions such as asylum seeker payments and United Nations payments as unusual, it issued its notice of concerns about the company’s anti-money laundering practices.
Now, the CBI has advised that PCSIL’s proposed material growth policy is higher than it would want to see, and they have proposed that certain limits be applied to programs that could have a negative impact on the PCSIL business – if implemented.
EML is planning to present a detailed analysis of the limits applied across almost 27,000 programs to CBI in the next week along with a proposed recalibration of limits for certain programs.
PCSIL also intends to provide submissions around the potential dirctions by 28 October 2021.
Semiconductor player Sensera took a bit of hit today, with customers NanoDX deciding to go with an entirely different design to the company’s MicroElectroMechanical Systems (MEMS).
Sensera has been working for 18 months to provide a MEMS-based solution for rapid COVID testing and to interface MEMs structures into a nanowire-based technology solution.
“It has become clear that this combination does not allow to scale up to high volume manufacturing,” the company said.
“NanoDX has commenced an entirely new type of design that does not include MEMs and this will terminate any further activity with Sensera on this product.”
And the share price took a hit, down 33.33% today.
From tech losers to tech winners, Rewardle had a big morning after announcing some BNPL news.
The customer loyalty platform surged higher on some BNPL-related news out of the UK market.
RXH referred to a deal it inked back in April with SplitPay Group, an Australian-based firm operating BNPL services in the UK and Europe.
Instead of a $30,000–$60,000 cash fee for professional services provided, RXH said it has converted that payment into a shareholding of between 0.5% and 1% in SplitPay.
Property tech company Openn Negotiation was unchanged today after news its wholly owned subsidiary, Openn USA Inc. has been selected by REACH Canada Accelerator Ltd to participate in the REACH Canada 2022 program.
REACH basically helps accelerate and grow promising new technology companies in the real estate industry by leveraging a community of real estate industry executives, investors, developers, mentors and entrepreneurs.
“Openn is the first company to be invited into multiple REACH programs internationally, which provides us with great confidence that the platform we have developed is genuinely transformational for the real estate sector,” Openn managing director Peter Gibbons said.
“The North American market is extremely important to us and being able to work within the REACH team and their extensive network underpins our market entry and tailored value proposition to maximise market acceptance and growth.”
But, in consideration for participating in the Accelerator Program, Openn will pay a US$250,000 program fee to REACH and its affiliates with US$100,000 payable up-front, and the balance to be paid in monthly instalments of US$50,000 each.
Plus the company has entered a binding side letter with REACH under which REACH affiliates will make an equity investment in Openn by subscribing for 2,060,157 fully-paid ordinary shares in OPN at an issue price of A$0.20 per share.
Software player Cirralto is up 3.5% today off the back of a $1.1 million update to the Splenda Payment Suite that it released earlier this year.
The upgrades enable pay later services in B2B trade with enforceable payment agreements at the end of the loan period, benchmarked against standard business terms of trade like 30 days from invoices and 30 days from end of month (EOM).
Basically, it enables business to continue to pursue marketplaces, suppliers, manufacturers and franchise groups and offer risk-free trade with their business customers.
The company says the $1.1 million investment will unlock multiple competitive advantages that it believes will have a payback period within the current financial year and provide the foundation for accelerated domestic customer acquisition and international expansion.