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post Posted: Nov 7 2019, 06:57 AM
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In Reply To: blacksheep's post @ Nov 6 2019, 12:00 PM

yes more to this then has surfaced imo.. taking a long time to re list if it was straight forward

post Posted: Nov 6 2019, 12:00 PM
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In Reply To: blacksheep's post @ Nov 1 2019, 12:31 PM

Weimin Xie is the chief visionary officer and portfolio manager at MX Capital.

Do you own iSignthis, and do you think the unicorn valuation is appropriate?

We don't own ISX and never had. We looked at the stock at around 14¢ a year ago and decided to not invest. The area of business that ISX focused on are high-risk merchants that the major banks choose not to deal with, this entails large latent risks which are now being revealed by the ASX queries.

The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
post Posted: Nov 1 2019, 12:31 PM
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Australia stock market probe hints at magnitude of alleged Israeli scam industry
Australian payment facilitator iSignthis, in trouble with regulators, admits to processing up to $69 million for a single Israeli forex/CFD company in a month

Interesting one of ISX's largest shareholders (Red5) is also located in Cyprus - must be a popular place to do business
Call centers in Cyprus and the Philippines
According to the Australian liquidation court filings, operated from call centers in Cyprus and the Philippines while AGM Markets ( operated from a call center in Israel known as Falcon IC&T Ltd, which according to Israel’s corporate registry is owned by Nissim Alfassi, one of nine suspects indicted by the US Department of Justice in February.

The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
post Posted: Oct 24 2019, 11:05 AM
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The Company has presented its results at the Goldman Sachs Annual Tech Day in Sydney.
My opening remarks to the Goldman Sachs Tech Day Conference were:
"As you are no doubt aware, iSignthis – like so many companies in the FinTech space - is in the midst of a regulatory inquiry.
To date we have answered questions ranging across such diverse subjects as our EU licences, our audited revenue figures and our shareholders to Bitcoin, binaries and our old bank.
What I can tell you today is that we are actively engaging with the regulators and we are yet to see a question that gives our board or our executive team any cause for concern about our continuous disclosure, our due diligence or our business operations.
We will keep our shareholders updated as we are able, but our priority now is to answer questions from regulators and help them understand our business and what we do."
Expect that Company to respond in detail in the next 1-2 business days to further queries received from the ASX.
We are working to lift the suspension as soon as possible.
The outlook for the Company continues to be extremely positive, with growth prospects in the EU looking favourable well into the future.
Thank you for your support.
N J (John) Karantzis

post Posted: Oct 10 2019, 12:12 PM
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In Reply To: nipper's post @ Oct 10 2019, 11:35 AM

Have you read this one from Joe Aston AFR- iSignthis and Red 5's unforgettable breastfeeding antics

I came across that pic a while back also

The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
post Posted: Oct 10 2019, 11:35 AM
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another summary:
The iSignthis Ltd (ASX: ISX) controversy is no nearer to resolution after the self-styled ‘paydentity’ business told investors the sudden suspension imposed by both securities regulators ASIC and the ASX was nothing to worry about.

In fact iSignthis claimed the suspension was good news as it gave it the opportunity to “clear up rumour and innuendo” around the business’s ownership structure and compliance with continuous disclosure obligations.

In its announcement the company referred to “significant media focus” over the ownership of iSignthis shares held in separate legal entities named iSignthis BVI and Red 5 Solutions Ltd.

According to the announcement, on 16 March 2015 iSignthis issued escrowed performance rights convertible into shares after two years (i.e. in March 2017) to the CEO, two family members, and a number of other named individuals.

It then denied that any directors or ‘related parties” have sold shares in iSignthis since its resisting in March 2015.

This is important because continuous disclosure obligations impose strict conditions forcing companies to disclose when directors or related parties (i.e husbands, wives, etc) sell shares in a business, as this is considered material information for public investors.

iSignthis also claimed that performance rights (convertible to shares) were issued to a number of individuals in Red 5 Solutions, but not of them were directors or related parties other than the CEO’s brother Andrew Karantzis.

The fact it claims none of Red 5’s iSignthis shareholders were legally definable as ‘related parties’ under its interpretation of the Corporations Act is important as this means it does not have to disclose whether anyone who held iSignthis shares in Red 5 had sold shares.

It did concede that the company secretary for Red 5 is the iSignthis CEO’s sister-in-law and different stakeholders are free draw their own conclusions from this situation.

Between March 2017 and September 2019 iSignthis shares went from 16 cents to as high as a $1.76 on the back of a series of announcements revealing huge growth in its gross processing turnover volume (GPTV) that it earns fixed fee revenue on.

Even at its last closing price of $1.07 it has a market cap of $1.17 billion as the share count and investor excitement balloons. In its announcement it also reminded investors ‘two previous audits’ have been conducted on its revenue figures with ‘no material concerns arising’.

So while the company claims it’s done nothing wrong, the suspension imposed by regulators is highly unusual in an otherwise lightly regulated local market.

For now though there’s absolutely no suggestion iSignthis is involved in any malpractice itself.

- smoke/ fire interface

"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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post Posted: Oct 8 2019, 06:15 PM
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In Reply To: lugaville's post @ Oct 8 2019, 11:59 AM

iSignthis shareholder disclosures raise more questions
Jonathan Shapiro and Vesna Poljak
Oct 8, 2019 — 6.35pm


iSignthis says it has no obligation to disclose further information about its second-largest shareholder, British Virgin Islands-registered Red 5 Solutions, after revealing this week the managing director's brother is a shareholder of Red 5 but not the sole owner of the mysterious entity.

In response to questions, an iSignthis spokesman said he could not answer on behalf of Red 5 Solutions, which owns more than 10 per cent of iSignthis.

On Monday, iSignthis revealed that Andrew Karantzis, the brother of boss John Karantzis, was a shareholder of Red 5 Solutions. It also disclosed that the company secretary of Red 5 was Irene Naumova, who is married to Andrew Karantzis.

John Karantzis is understood to have gone overseas this week and sources said he was presenting to Goldman Sachs clients in London on Thursday.

iSignthis was suspended from trading by the Australian Securities Exchange last week pending the outcome of inquiries by the exchange and the Australian Securities and Investments Commission.

“ISX has made multiple disclosures regarding our shareholder breakdown. The company has this week made additional and voluntary disclosures to dispel the rumour that any directors of ISX or individuals who are classified as a 'related party' of the company have never held shares in Red 5. This is absolutely not the case,” iSignthis' spokesman said on Tuesday.

ISXiSignthis Ltd

1 year
1 day
Oct 18
Feb 19
Jun 19
Oct 19

Updated: Oct 8, 2019 — 7.02am. Data is 20 mins delayed.
View ISX related articles

"All questions regarding ISX’s shareholders should be directed to those shareholders.”

iSignthis had previously said in response to questions about Red 5 that it is "not privy to the ownership" of shareholders other than individuals.

The BVI company appeared on the iSignthis share register in September last year with 130 million shares. It sold 17.5 million shares in February this year. Red 5 holds performance rights on behalf of a number of early staff.

Andrew Karantzis is the company's chief of sales and was named in Monday's announcement as one of eight "angel" investors who had backed the business before it floated.

John Karantzis previously declined to respond directly when the Financial Review asked him whether Andrew Karantzis had an interest in Red 5. He said "no related parties" held shares.

However, a connection was inferred because Ms Naumova, who signed Red 5's stock exchange disclosures, had appeared in social pages photographs at an event with Andrew Karantzis. She also told a journalist from The Daily Mail in 2018 that she resides in Cyprus and her husband, Andrew, was a company director.

iSignthis has maintained that its disclosures are adequate and no Red 5 investors or beneficiaries qualify as "related parties" as defined by the Corporations Act.

However, issues could arise depending on the nature of associations between the entities, such as determining whether there is sufficient liquidity in the stock, used to calculate the free float, and considered by index providers for index inclusion.

The ASX was unable to comment at this time, because it is one of the issues being looked at in the broader iSignthis enquiry, a spokesman said on Tuesday.

iSignthis has strongly rejected claims that its ownership structure is "opaque".

However, it may have had to disclose further details of its ownership to European financial authorities as part of its Electronic Money Institution application.

A document produced by Deloitte to assist clients in applying for a licence with Cypriot authorities advised that legal or natural persons with a holding of more than 10 per cent are required to complete a questionnaire.

iSignthis has an office in Cyprus and its subsidiary iSignthis eMoney Ltd is authorised by the Central Bank of Cyprus.

Shares in iSignthis remain suspended while the ASX and ASIC seek responses to several issues relating to the company.

iSignthis said on Monday the suspension gave it an opportunity to "clear up rumour and innuendo" surrounding the business, and attributed the queries to share price volatility.

Last month, iSignthis declined to explain the nature of alerts set off at Danish bank KAB last year, after a joint investigation by The Australian Financial Review and Danish business publication Børsen revealed that KAB received 26 alerts relating to foreign transfers in and out of the account of iSignthis eMoney.

iSignthis assured the market it "adheres [to] or exceeds" its regulatory requirements.

The alerts related to unusually large foreign transfers and were triggered between June 14 and July 23, 2018; 10 of 14 alerts in June related to payments into the iSignthis subsidiary account and 10 of 11 alerts in July related to payments out of the account.

post Posted: Oct 8 2019, 11:59 AM
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In Reply To: blacksheep's post @ Oct 8 2019, 10:05 AM

must be more to it for ASIC to come in ??

post Posted: Oct 8 2019, 10:05 AM
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I thought I read in a previous ann they did not know who the ultimate beneficiaries of Red5 were? Now it seems they do. I did a very quick google search a while back when a friend asked me what I thought of ISX as an investment - sent him my research that included some pics of the company secretary, Irene Naumova,, with Andrew Karantzis - brother of CEO John. Bother companies BVI regisitered. Wasn't that hard for me to put 2 + 2 together. ASX should enforce a rule whereby the beneficial owners of these substantial holders are automatically identified - kills the media focus/shorter focus/investor focus, etc. Why not make it known

There has been significant media focus regarding the distribution of shares issued to iSignthis Ltd (BVI) and the allocation
of Performance Rights Shares (”Performance Rights”) issued to Red 5 Solutions Ltd (“Red 5”).
iSighthis Ltd and Consideration Shares

Prior to listing, the following individuals (“Angel Investors”) invested cash into the Company and in return were granted
rights by iSignthis Ltd (BVI) that, upon expiry of the escrow period per the December 2014 Prospectus (“the Prospectus”),
led to the issue of shares (“Consideration Shares”) in the Company.

1. Nickolas John Karantzis (CEO and Managing Director)
2. Timothy Hart (Non-Executive Chairman)
3. Todd Richards (Company Secretary)
4. Andrew Karantzis (Chief Sales Officer)
5. Konstantina Karantzis (Mother of Andrew and Nickolas John Karantzis)
6. Ian Tetro
7. Benjamin Walmsley
8. David Edmonds
The Consideration Shares were issued to iSignthis Ltd (BVI) to be held in escrow for a period of two years from 16 March
2015. iSignthis Ltd (BVI) acted as trustee for the Consideration Shares such that the escrow conditions of the Prospectus
could be managed via a single entity.
No directors or their related parties have sold shares in ISX since its relisting on the ASX in March 2015.

Red 5 Solutions Ltd (“Red 5”)
Performance Rights (Class A, B and C) were issued to a number of investors and staff who contributed to the performance
of the Company in its initial years, as per the Prospectus.

Red 5 acts as the entity that holds Performance Rights on behalf of a number of early-stage staff.
The Company can confirm that of the eight Angel Investors listed above just one individual also has holdings in Red 5. That
person is Mr Andrew Karantzis, who has also worked as an employee of the Company as Chief Sales Officer and has been
issued Performance Rights.

The Company can confirm that no individual who can be classified as a “related party” under Section 228 of the
Corporations Act (2001) has a shareholding in Red 5 or any beneficial or pecuniary interest in shares held in Red 5.

The Company Secretary of Red 5 is Ms Irene Naumova, the wife of Mr Andrew Karantzis.

Technically Corporations Act 2001 doesn't mention "brothers" as being related parties but maybe it should - since when is a brother, or a sister, not a relative?

Related parties
Controlling entities

(1) An entity that controls a public company is a related party of the public company.

Directors and their spouses

(2) The following persons are related parties of a public company:

directors of the public company;
directors (if any) of an entity that controls the public company;
if the public company is controlled by an entity that is not a body corporate—each of the persons making up the controlling entity;
spouses and de facto spouses of the persons referred to in paragraphs (a), (b) and ©.

Relatives of directors and spouses

(3) The following relatives of persons referred to in subsection (2) are related parties of the public company:


The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
post Posted: Oct 5 2019, 03:32 PM
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In Reply To: blacksheep's post @ Oct 2 2019, 11:01 AM

Regulators jam brakes on the iSignthis rollercoaster

The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

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