Any consideration of the definition of revenue should be considered in reference of the prospectus and supplementary prospectus that was issued in 2015. Those documents described the performance share milestones and also provided a lot of information about the ISX business that was being acquired.
The question to be answered in my mind is would an ordinary investor, having read and properly understood those documents consider the income generated from the 4 contracts to be revenue in manner contemplated by those offer documents. That is, did ISX make clear that those types of revenue would ordinarily be derived as part of the business activities etc.
I guess the court will decide what the true answer is.
Personally, I don’t think ISX have done anything illegal, just not 100% sure about the income qualifying as ‘revenue’ under the terms of the offer documents.
Either way, shareholders will be better off once this is behind us.
ISX Price at posting:
$1.07 Sentiment: Hold Disclosure: Held
