The market seems to be thinking that Nuix will lose the court...

The market seems to be thinking that Nuix will lose the court case, so the selling pressure is too high.

I think it's not only the negative EBIDTA but the addition of ASIC penalties and ASIC's legal fees, should ASIC win, that is spooking the market.

The HY update was good but was expected to be even more spectacular, to be able to absorb all the above mentioned costs easily.

The loss of court case will put a financial crunch on Nuix, and they might need to do a capital raise. On top of that, the looming class action and associated legal costs might tip Nuix into deep red territory financially.

ASIC win will strengthen the class action lawyers' rhetoric.

If Nuix wins the case, ASIC will pay Nuix the legal fees, Nuix will become positive on EBIDTA and FY results will be better than expected.

So Yes, a lot rests on ASIC vs Nuix court outcome.

Nevertheless, the business is growing well, its investing in the future, introducing new products, doing everything right. Cash issues are temporary. The business will prevail. Might take longer than expected to reach the valuation the business deserves, thanks to all the crooks out there to destroy a good Australian homegrown tech unicorn.