The Douugh share price remains in a trading halt as the company responded to an alleged breach of ASX listing rules.
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This is now the fourth week that shares in the tech minnow have been suspended. As such, the Douugh share price remains static at 17 cents.
Douugh offers response
Today is the second time this week that the fintech has responded to the ASX Ltd (ASX: ASX) query.
Douugh was asked for particular dates regarding the deal to acquire Goodments, and responded as follows:
On Wednesday, 21 October 2020, CEO Andy Taylor started discussions about a potential opportunity with Goodments. Discussions between the company and Goodments progressed over the course of November 2020 however negotiations remained incomplete during this period – terms of the transaction had not been put to the company’s board and not every aspect of the transaction had been confirmed.
With no final deal being reached, negotiations continued until 9 December when an agreement was reached between the companies. They signed a non-binding term sheet which included the indicative terms and provisions regarding the acquisition of Goodments business.
Following this, the Douugh claimed it complied by confirming the acquisition of Goodments with the ASX. This confirmation was received on 18 December.
Douugh maintains innocence
The company also said it has complied with the listing rules of the ASX, and in particular rule 3.1. This rule being that, “Once an entity is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information.”
Douugh will now await the ASX’s response.
About the Douugh share price
Douugh describes itself as a ‘capital lite’ fintech, taking an articial intelligence (AI) first approach to disrupting banking. Through its app, the company aims to help users grow and manage their money to live a financially better life.
Listing in 2020, the company generated huge initial interest from investors, becoming one of the most traded stocks on the ASX at the time.
However, despite an early surge in the Douugh share price up to highs of 49 cents in October, shares in the troubled company currently sit at 17 cents.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.