In TEXT:Title: Open letter to John Karantzis, directors and staff of ISXFEU related companies
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Mysympathies are with all of you for having to give up the big fight here inAustralia to clear your and your company’s name. It would have been a difficult decision. But it would have been clear after ASX won the argument for costs at $2.67m based on the ASX’s current costs of >$3m which were > 2 times the value of ISX’s legal costs to date. ASX council argued (and the registrar obviously agreed) that these costs were necessary to protect the “good name” of ASX as the centre of Australia’s financial system. Clearly, there is no equality of rights between ASX and ISX in Australia. ASX put every unfounded accusation in the public eye with every ASX query letter and made every effort available to ASX to publicly discredit ISX in the eyes of Australian investors and shareholders. This is clearly a travesty of justice and a loss for all Australian investors.
Ipersonally think it is quite amazing that we shareholders are in such greatshape considering your choices in early December 2019 when ASX sent you its“reasons for suspension” report. It is important to remind people that ASX said in its defense document, “ anyrepresentation conveyed by the Final Reasons in relation to the matters allegedto constitute the Eleventh Representations (which are denied) was a representationof ASX’s opinion based on information provided to it by ISX, oralternatively of ASX’s opinion, and not a representation of fact.” Any reader here on HC would be very aware that many statements contained in that fact less report was posted as fact by aniesbaswedan and others- such is the state of the proliferation of “opinion” as fact in social media and the “reasons” report’s ability to damage your reputations.
Andwhat really were your choices since ASX allegedly had inferred that they wouldnever allow ISX to trade again?
1. Acceptthe report – only to be delisted by ASX.
2. Fightin court in an attempt to clear ISX and its directors’ reputations for what youknew was an outrageous and damaging report released to the public by ASX.
Andthis was the only choices since no ASX listed company has any other avenue to be heard or to challengean ASX decision sinceASX removed, effective from 24 December 2015 and without any prior notice, theright for a company listed on the ASX to appeal a decision made by ASX underthe ASX Listing Rules.[1]
And what were the potential (and real) outcomes of thetwo choices above?
· (1)Accept ASX report:
o Delistingby ASX of ISX as a working entity with most probably a full loss ofshareholder’s investments since it would be very difficult for ISX to operateas a respected Neobank from Australia.
o Anearly delisting might have removed ASIC’s reason for proceeding in the CivilCourts against ISX and consequently ISX’s chance of clearing its name in thethat proceeding.
o Noshareholding in NSX and real competition with ASX.
· (2)Challenge ASX in court:
o Apossible win in courts and a clearing of reputations in the ASX proceedingsincluding damages,
o Achance to clear reputations in the ASIC proceedings,
o Asis now, eventual delisting of ISX (SP1) in Australia, but not until after:
§ the operating arms of ISX as ISXFEU were extracted from ASX’s and ASIC’s clutches here in Australia to the European Union where it is successful today,
§ a future listing on an alternativestock exchange, and
§ continued investment in NSX.
I amgrateful for everyone’s (CEO, directors and staff) loyalty to John and ISXFEU. We note that there has been no great exodus of staff – instead there have been an addition of many quality and qualified staff. I also note ISXFEU’s 2022 Q3 report states as key highlights:
· Forthe first 9 months of 2022, ending 30 September 2022 (9mths YTD), the Group hasreported a €1.6 million profit after tax, up 56% on an annualised basisto the prior year.
· SteadyIncrease in Open Banking volume growth, with further accelerated growth due to'orchestration' for third party PISP's
· 2022Total processed inflow volume already surpassed 2021, with 1 full quarter ofoperations remaining.
I amconvinced that we as shareholders would not be in this position if you hadbowed to option 1.
I amgrateful to you, John Karantzis, that you have not crumbled by the orchestratedefforts to destroy you and the company by the various Australian entities orfrom the countless disparaging posts on HC – many of which are just plain puredefamatory. I am continually amazed at your resilience and ability to think “outside the box” and many moves ahead of the state of affairs.
I amgrateful also to the other directors and staff who also clearly have that greatability to see beyond the state of today, for their input and effort and fortheir “staying power”.
A greatthanks,
Itzgr82baliveand Idh82bdead
[1] https://www.lawcouncil.asn.au/resources/submissions/3147-removal-of-appeal-rights-for-decisions-under-asx-listing-rules
