iSignThis to demerge European business to pursue new stock listing
ISX Financial EU – which handles iSignThis’ operations within Europe – will receive AUD$6.6m from the original business through a convertible note, intended to provide long-term financing for the next 10 years. iSignThis may convert the money owed on the note to shares in the European business.
iSignThis non-executive director Christakis Taoushanis will take over as chairman of the new European business, and has ceased to be a director of iSignThis.
The European business – which would be owned by iSignThis shareholders – would then trade on a stock exchange other than the Australian Securities Exchange, with which iSignThis has been in a long-running dispute.
ISignThis’s shares were suspended from trading on 2 October 2019, with the provider saying it did not receive a reason for this.
In December, the provider launched legal action against the Australian Securities Exchange over that decision and the decision not to reinstate the shares.
The continuing Australian iSignThis business will continue to pursue its legal claim against the exchange. It will hold $4.3m in cash, which will help the business continue to pursue the claim.
The proposed demerger would be subject to ISX shareholder approval at a general meeting on a date to be announced, though iSignThis said it would be “most likely in October”.