Surprised that so many are still defending JK here.
ASIC are not doing this to help out ASX. That is dumb. As so many have been on here pointing out, the ASX are a market operator, ASIC are a government regulator. At this stage, the government regulator in charge or corporations believes that they have sufficient evidence to prosecute ISX and JK for defrauding us.
Let me say this very clearly: ASIC are suing John Karantzis. For acting against the interests of shareholders.
He has lied, misstated revenue (by stating it as recurring when it was one-off), and deliberately booked revenue with no/little profit just so that he could partake of an extra 300m shares, which significantly hurts our holdings. He then didn't tell us that a completely impartial company (Visa) didn't think we had tight enough financial controls to deserve trusting.
What's more likely: ASX, ASIC and Visa all colluded together and decided that ISX should be targetted for some vague purpose. OR ISX has screwed up.
In before: it's "circumstantial". This isn't Law and Order, in Australia and the real world circumstantial evidence is permitted, and the court then determines whether on the balance of probabilities it is factual. In this circumstance, ISX booked one-off revenue doing intermediary work (which is to say, ISX didn't do the work, it was just the middle man) at minimal profit, which appears to have only been done so that JK & co could achieve milestones to entitle themselves to 30% of our company.
Also before: "Why aren't we trading yet". They do a trading halt before a capital raise. If there's a placement of 10%, they freeze while it's processed. One third of our shares are likely to be cancelled. We don't have a market capitalisation. We have a CEO who has defrauded us, been caught, and has spent millions of our money trying to clear his name. And ASX and ASIC both believe that he hasn't announced everything to the market to be in compliance with listing rules. We won't be trading any time soon.
We just get to wait until this sorts out, and then join the class action. Unfortunately, JK will very likely declare bankruptcy and we'll end up with nothing anyway.
ISX Price at posting:
$1.07 Sentiment: None Disclosure: Held
