Hi All,
I have been watching all the banter of late. I am surprised no one is revisiting the statement of claim and making relevant comments.
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-312mr-asic-commences-proceedings-against-isignthis-and-its-managing-director-nickolas-john-karantzis/I for one think ASIC might struggle with some of their claims. Not to say they won’t win a few points, but I can’t make sense of their argument based on known public information.
I think it is fair to say that the reporting of one off revenue would be measured against the listing rules and from what I know, there is no rule that specifically calls this out. The performance share’s being awarded and ASIC calling it personal gain, I don’t think stacks up. We know the document that exists at time of listing that called out the risks that performance shares could be awarded for low margin sales. I think unless there is a paper trail that says otherwise in internal emails and memos, how do you prove JK and team had did this at the expense of shareholders.
The comments/ representations in the investor presentation about one off costs vs other revenues. This could go either way for me. I feel that prosecuting this point is just knit picking, but I feel this point could be lost on arguments.
Further, the visa issue, this in my opinion was instigated through 3rd party intervention. This argument could go either way, but I feel that ASIC and ASX and VISA were overly involved in the creation of this whole saga.
If the calls of the day go against JK, then I assume a CEO could be appointed to the company as part of any future listing, so I feel all is not lost.
Blood will likely be shed by all parties.
I hope for all shareholders sake, we get a positive result, or a semi positive result that doesn’t impact where the company is today and it’s prospects for listing and future growth.
