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ISX, ISIGNTHIS LTD
blacksheep
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



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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
 
nipper
post Posted: Oct 10 2019, 11:35 AM
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another summary:
QUOTE
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



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"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
 
lugaville
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

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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.

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"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.

 
lugaville
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 ??

 
blacksheep
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

QUOTE
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?

QUOTE
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:

(a)
directors of the public company;
(b)
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;
(d)
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:

(a)
parents;
(b)
children.




--------------------
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
 
blacksheep
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
https://www.smh.com.au/business/companies/r...001-p52wnm.html



--------------------
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
 


blacksheep
post Posted: Oct 2 2019, 11:01 AM
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In Reply To: blacksheep's post @ Oct 2 2019, 10:34 AM

QUOTE
iSignthis
By Colin Kruger
Shares of controversial tech stock iSignthis have been suspended from trading pending inquiries from both the Australian Securities Exchange (ASX) and the Australian Securities and Investments Commission. (see post at 10.01am)

iSignthis, climbed to a $1.8 billion market cap peak last month before questions emerged about how it managed to report revenue of more than $5 million for the half year ending June 30 last year which triggered this issue of performance rights to executives worth $550 million as of last month.

For the six months to June 30, iSignthis generated revenue totalling $7.5 million.

iSignthis shares soared on Tuesday after the company released its first lot of performance numbers since plunging last month on questions about how its executive team were handed hundreds of millions of dollars worth of shares. iSignthis reported Tuesday morning that “actual annualised gross processing turnover volume (GPTV) generated on its payments and secure identity platform now exceeds $1.9 billion on an annualised basis".

The shares closed 14 per cent higher at $1.07. It said the gross fee it is receiving on this turnover is “consistent” with its targeted average of 125 basis points.

More to come




--------------------
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
 
blacksheep
post Posted: Oct 2 2019, 10:34 AM
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Good move by ASIC/ASX , IMHO. Despite a number of Responses to please explains from ASX, there are a number of issues that still need explaining .

QUOTE
2 October 2019 Market Announcement 1/1
ASX Limited ASX Customer Service Centre 131 279 | asx.com.au
iSignthis Ltd (ASX: ISX) – Suspension from Official Quotation

In consultation with the Australian Securities and Investments Commission (‘ASIC’) and having regard to the
recent volatility in its share price, ASX has determined that it is appropriate to suspend trading in the shares of
iSignthis Ltd (‘ISX’) with immediate effect under Listing Rule 17.3, pending the outcome of enquiries to be made
by ASIC and ASX into a number of issues concerning ISX.
The securities will remain suspended until further
notice.
Issued by
James Gerraty
Senior Manager, Listings Compliance (Melbourne)

https://www.shortman.com.au/stock?q=isx
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--------------------
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
 
nipper
post Posted: Sep 10 2019, 09:58 AM
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Why Australia's answer to PayPal is trading up tenfold

Payments company iSignthis is emerging as one of the small cap success stories of the year, with the value of its stock leaping more than tenfold in the eight months since January.

The share price of the business, which has created a patented payments network with strong fraud and identity checks that can be used by institutions that need to comply with anti-money laundering (AML) regulations, has increased from only 15¢ in January to $1.55, pushing its market capitalisation from $161 million to $1.7 billion.

The not-so-small cap stock, which is dual listed on the Frankfurt Stock Exchange, was pushed up another 13 per cent on Monday afternoon, after revealing that its annualised monthly gross processed turnover volume (the amount of money forecasted to be flowing through its network annually) had jumped 160 per cent since June to $1.1 billion.
Chief executive and co-founder John Karantzis told The Australian Financial Review the company's payment network was similar in many ways to PayPal except that it targets different sectors of the market.

"We have gone a bit deeper into payments technology and agreements than PayPal, as we connect into central banks in Europe, the SEPA [single euro payments area] payment scheme, and we are a principal member institution of Visa, Mastercard, Diners, Discover, JCB, and ChinaUnionPay in Australia and the EU," he said.

"Where PayPal targets retail, we target AML regulated sector businesses, which offer financial services such as securities, foreign exchange, contract for differences or high value or cross-border goods, digital services and banking services."

The company's rapid share price increase has been driven by constant news since it began operating in earnest in March. It has posted regular growth updates and had quarterly investor briefings and in August it also secured a deal with the local subsidiary of Visa which meant it could act as a principal merchant and process their payments in Australia and the Asia Pacific.

It's even more astounding given that the company, which also offers electronic money deposit taking, listed in 2015 at a price of 3¢ and in the six months to June 30 it only banked $7.5 million in revenue.

Like PayPal, iSignthis is also an issuer of electronic money in the European Union and in Australia it is seeking to be granted the second purchased payment facility authorised deposit-taking institution (ADI) licence, with the first being given by APRA to PayPal.

iSignthis has also applied for access to the Reserve Bank's payment infrastructure and when this is granted the company will be able to offer Australians BSB account style access, as it does in Europe with IBAN-based bank accounts. In contrast, PayPal utilises a person's email or mobile for reference to an account. Currently iSignthis has 260 merchants in its "paydentity" ecosytem, making up a decent chunk of the financial services businesses industry.

Mr Karantzis said the payments platform took three years to build and tackles the issues retailers faced of high numbers of chargebacks for fraud.

"Knowing a person's identity reduces the opportunity for fraud, but it also allows us to perform Know Your Customer (KYC) [checks], which is the key to onboarding customers online and meeting AML regulations," he said.

"Paydentity brings in the KYC, KYCC [a deeper understanding of the customer] and the various payment methods, and allows us to onboard a customer within 3-4 minutes of that customer being referred to us by one of our merchants in our network," he said. "The network effect then kicks in, as more business customers want access to the already KYC’d retail customers to whom we’ve issued electronic money, and the retail customers want fast access to the businesses on our ecosystem."

In the six months to June 30 the company substantially reduced its losses, narrowing its net loss by 75 per cent to $700,000. In the second quarter of the calendar year it also achieved positive cash flow of $9.9 million.

Mr Karantzis said investors had driven the company's price up based on its strong revenue trajectory and margins.

"I think our valuation, given our growth prospects and the fact that we achieved cashflow positive in four months, warrants a much better valuation than businesses that burn cash for years under the guise of promoting growth," he said. "We are aiming to drive both growth and value, and take an ‘old school’ view that any product line we launch must be profitable at the gross profit level."

Mr Karantzis said the company was also steering clear of areas dominated by the big four banks.
"We also don’t need a lot of capital, so unlike neobanks that are a cash sink as they need capital to offer loans, we have started our neobanking services by not getting into the loans and mortgages area," he said. "We see the big four being dominant in that area, and we offer services where the Big 4 typically won't, can't or have already exited due to either brand issues, AML concerns or lack of technology to deliver."



--------------------
"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

Said 'Thanks' for this post: terrine  
 
terrine
post Posted: Sep 9 2019, 09:42 AM
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Should be a good day
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