ISignthis Ltd (ASX:ISX) is the subject of increased regulatory scrutiny after it failed to disclose full details of a subsidiary within its ranks. The company’s shares remain suspended for trading and remain in the federal court.
Click Here for Free BNPL Research Report
ISignthis Solution Debacle
The standoff with regulators stems from a regulatory filing that the company made as part of its annual financial report. The embattled fintech service provider listed iSignthis Pty LTD as one of its subsidiaries registered on December 3, 2019. It has since emerged that the subsidiary might have been registered as early as September 17, 2013, before changing its name to iSignthis Solutions late last year.
The subsidiary in question is also believed to have changed hands on December 2 as it operated as Inlex PTY Ltd owned by iSignthis CEO, John Karantzis. It is only on December 3, 2019, that the company reportedly changed its name to iSignthis Solutions with Probanx Holdings, another iSignthis the subsidiary, becoming the sole shareholder.
It has since emerged that Inlex Pty Ltd from which iSignthis Solutions emerged was merely a shelf company that was transferred for nil consideration. However, according to accounting standards in Australia, iSignthis was required to declare the transfer in its annual report, something it failed to do.
The declaration never occurred, and iSignthis tried to pass off iSignthis Solution as a new entity, something it was not, in the first place. ISignthis, on its defense, maintains that Inlex from which the subsidiary emerged had no assets or liabilities. However, the company had an active Australian Business Number.
ISignthis Strategic NSX Limited Investment
Amidst the regulatory standoff that has resulted in the suspension of the company’s shares, iSignthis appears to be doing exceedingly well when it comes to the execution of its core business. The company is fresh from taking a strategic investment into NSX Limited.
The fintech service provider has acquired a 12.96% stake via a $4.2 million placement at $0.145 a share. The company is currently seeking shareholder approval to raise an additional $5.8 million as it seeks to increase its stake in NSX limited to 19.9%.
NSX Limited, in which ISignthis Limited is acquiring stakes in is an Australian Market Licensee operating the National Stock Exchange. The company provides service stock exchange facilities that allow the listing of equity securities and corporate debt as well as investment scheme units.
According to ISX Managing director, Karantzis, teaming up with NSX should lead to the development of a platform that will significantly increase NSX’s attractiveness as a broking and investment partner. The end game is creating an Australian version of the NASDAQ to compete hand in hand with the ASX.
NSX Limited is seeking to become Australia’s first true digital and digitized asset exchange. By teaming up with ISX, the two should be able to develop a platform that will support and accelerate the transformation. The primary goal is to come up with a platform able to shorten the settlement period than what is currently offered by other global and domestic exchanges.
Media Contact
Company Name: Profectus Solutions Pty Ltd
Contact Person: Rick Langdon
Email: Send Email
Phone: 0385184106
Country: Australia
Website: www.profectussolutions.com.au