iSignthis ASX dispute continues
The saga continues between suspended tech group iSignthis and the ASX, over its disclosure to the market about its agreements with payments service Visa. iSignthis today responded to additional query letters from the ASX regarding the company's suspension and termination by Visa.
Correspondence from Visa shows it suspended its relationship with iSignthis in March this year, and terminated the relationship the following month due to “serious concerns about whether iSignthis is operating appropriate programs to manage anti-money laundering and risk.” ISX's shares have not traded for more than a year while ASX and ASIC queries continue.
However, the company is suing the ASX for $465 million in damages over the suspension. ISX contends that in deciding to suspend and continue to keep suspended, trading in ISX’s shares, ASX has failed to act in good faith and/or honestly and fairly and/or reasonably in exercising its powers under the Listing Rules.
Mr Karantzis, CEO of ISX, said “By any measure, the increase in damages claimed by ISX and the impact of any adverse finding continues to make this a high stakes and material case for the ASX, as the impact goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market.
The ASX has to substantiate its reasons for the suspension of iSignthis Ltd, based upon the facts as they were known to it on the 2nd October 2019. To date, we still have seen no evidence of any investigation into “price volatility” by the ASX, nor how price volatility could have been the reason for suspension.”
“It would seem inconceivable under the ASX’s own Listing Rules that the board of the ASX would consider this action as ‘not material’, especially given both the quantum and the impact any contravention of s1041H of the Corporations Act would have on the ASX’s Australian market operators license.”