iSignthis Ltd (ASX: ISX) shareholders this morning awoke to news revealing that their embattled ASX-listed company is planning to the ASX Ltd (ASX: ASX) to the Federal Court.
iSignthis is listed on the ASX and Frankfurt Stock Exchange. The company says it provides remote identity verification and payment authentication combined with e-money, transactional banking, IBAN issue and payment processing capability. Its products and businesses are iSignthis Paydentity, ISXPay, UAB Baltic Banking Service and Probanx Information Systems.
The ASX operates Australia’s largest and most active share market. As part of its duties to the Australian financial system, it must perform some regulatory duties in-line with the law and best practices set by the financial watchdog, the Australian Securities & Investments Commission (ASIC).
iSignthis Taking The ASX To Court
In a statement to shareholders and the ASX, iSignthis says it has begun legal proceedings against ASX Limited in the Federal Court after the stock exchange operator suspended trading in the company’s shares, and it failed to reinstate them to active trading.
iSignthis’ management says they are trying to lift the suspension and return shares to active trading.
“We are acting in the interest of our shareholders, as they have been denied the basic right to trade our shares for too long,” iSignthis’ Chairman Tim Hart commented.
iSignthis caught the attention of many market commentators, journalists and analysts over peculiar events in its past. The media and investor attention seems to be part of the reason why the ASX and ASIC began to question iSignthis.
The latest round of public questioning by the exchange occurred in November. And in the document filed with the court, iSignthis also alleged that the ASX leaked confidential information.
“We have answered scores of questions and provided more than 2000 pages of confidential documents dating back almost three years,” iSignthis CEO John Karantzis said.
“We have been patient and acted in good faith, but the Company’s shares have been suspended for nine weeks.”
In September, iSignthis shares rose to around $1.60 before plummeting back to around $1 and last traded at $1.07 before its suspension in October.
The ASX says it would vigorously defend the claims put forward by iSignthis.
