I happened to buy in this morning before seeing that news....

I happened to buy in this morning before seeing that news. Perhaps it's just my optimism, but it would be a long bow to draw to say that the exemption granted to a former CEO of the company will materially affect share price in the long term. If anything, the articles I have found read more like a criticism of the Government, not Tyro.

For anyone interested, here's a summary of my thesis buying in:

• Listed in 2019, appears to be making good headway in the market for electronic payments. Went from nil revenue in 2019 to 206m in 2020.
• Revenue is earned from taking a cut of POS transactions, but also rental and sale of POS hardware.
• Substantial shareholders buying in during Mar and Apr 20 at low prices.
• Only owes $2m in long term debt, total debt $7.4m.
• $103m cashpile post 2019 IPO, promising in an environment where many companies are needing to raise cash.
  • Electronic transactions have not necessarily dipped substantially during COVID in a way that is likely to be long term. Cash payments almost non-existent in the economy now.
• Recommendations from Montgomery and TMS Capital, and 2 x other brokers on Bell Direct platform.
• Increasingly seen in person when conducting electronic payments.
• Strong themes of transparency of reporting during COVID, and sustainable management in annual report.
• Currently unprofitable, but with revenue.
• Risks:
  • Interest coverage of -70. Nowhere near enough EBIT to cover interest payments.
  • 67% of outstanding shares held by the top 20 shareholders (source: Morningstar).

As for the regulation issue, I'm struggling to find any reporting on this. Can anyone provide a link that explains the issue?