Nuix (ASX:NXL) share price up 5% following update on ASIC investigation

Nuix has released news on ASIC’s investigation into alleged breaches of the Corporations Act.
The post Nuix (ASX:NXL) share price up 5% following update on ASIC investigation appeared first on The Motley Fool Australia. –

The Nuix Ltd (ASX: NXL) share price is gaining this morning after the company released an update on the Australian Securities and Investment Commission’s (ASIC) investigation into its listing.

Nuis has updated the market on ASIC’s investigation into alleged breaches of the Corporations Act. The company first announced it was aware of the investigation on 30 June.

Right now, the Nuix share price is $2.74 apiece, 4.58% more than its closing price yesterday.

Let’s take a closer look at today’s news from the tech company.

The latest on ASIC’s investigation into Nuix

The Nuix share price is up following the company announcing that it now has a better idea of the exact issues ASIC is most interested in, in its investigation into Nuix.

As The Motley Fool Australia has previously reported, ASIC is investigating the company due to concerns Nuix’s prospectus contained false information. Namely, whether its financial forecasts were inflated.

Nuix stated its aware that ASIC is mostly interested in 3 periods of reporting. Those are:

Financial statements from Nuix issued between 30 June 2018 and 30 June 2019
Nuix’s prospectus
Nuix’s market disclosures for the period between 4 December 2020 and 31 May 2021

Between 4 December – the date of Nuix’s Initial Public Offering (IPO) – and 31 May 2021, Nuix released 2 revenue downgrades to the market. In that same time frame, the Nuix share price fell 65%.

Today’s release from Nuix stated:

Nuix has not received any formal notification of an investigation from ASIC and remains confident that it has complied with its accounting and disclosure obligations.

Macquarie Group, Nuix’s largest shareholder and backer of its IPO, recently said its own review into Nuix’s listing found nothing sinister.

ASIC is also investigating the company’s former CFO and their family on allegations of insider trading.

Nuix share price snapshot

It likely comes as no surprise the Nuix share price hasn’t been doing well lately.

It has fallen 65% since it first listed on the ASX late last year.

The company has a market capitalisation of around $831 million, with approximately 317 million shares outstanding.

The post Nuix (ASX:NXL) share price up 5% following update on ASIC investigation appeared first on The Motley Fool Australia.

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More reading

Banks, NIB and Nuix share prices rise. Nick Scali flying. Scott Phillips on Nine’s Late News

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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