Raiz (ASX:RZI) share price rebounds 10% after move to boot out directors

Raiz investors regain their composure after yesterday’s shock announcement.
The post Raiz (ASX:RZI) share price rebounds 10% after move to boot out directors appeared first on The Motley Fool Australia. –

The Raiz Invest Ltd (ASX: RZI) share price is pole-vaulting higher on Thursday.

At market close, the investment platform provider’s shares are up 9.30%, trading at $1.88. This follows a sharp share price fall on Wednesday after a surprise move to remove certain directors from the Raiz board. Catching shareholders off guard, the Raiz share price tumbled 13.1%.

Getting outsted by the founder and CEO

Investors of Raiz must feel as though yesterday’s selloff was overdone as the share price regains today.

The surprise announcement sprung on shareholders entailed a ‘Section 249D Notice’ from BBH-GL Nominees Pty Ltd. For context, this company is associated with Raiz’s founder and CEO, George Lucas.

According to the share registry, Mr Lucas holds 5.12% of total shares on issue through his holding company. Because of this, Lucas is able to propose the removal of all or certain directors.

According to the release, the proposal is to remove 3 out of the 4 other board members. This includes Nina Finlayson, Kevin Moore, and Kelly Humphreys. Undoubtedly, such an unpredictable move has introduced volatility to the Raiz share price.

Upon receipt of the notice, the Raiz directors have 21 days to call a general meeting. Additionally, a further 21 days’ notice of the meeting is required to be given to shareholders. In trying to fit within these constraints, the meeting must also be held within 2 months of the company receiving the notice.

Unfortunately, shareholders still remain in the dark as to why Mr Lucas has proposed the swift removal of these directors.

The announcement finished by stating further details will be provided in due course.

Raiz share price snapshot

The Raiz share price has performed exceptionally over the past 12 months. Specifically, this Aussie fintech has surged 133% over the past year.

As a result of the phenomenal performance, the company now commands a $150 million market capitalisation.

The post Raiz (ASX:RZI) share price rebounds 10% after move to boot out directors appeared first on The Motley Fool Australia.

Should you invest $1,000 in Raiz Invest right now?

Before you consider Raiz Invest, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Raiz Invest wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

RAIZ Invest (ASX:RZI) share price crashes 16% amid leadership fight
Raiz (ASX:RZI) share price rockets on FY21 results
One Delta lockdown winner and 2 other rocketing ASX shares

5 ASX shares to hold for 5 years

Here’s why the Raiz (ASX:RZI) share price is storming 8% higher today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!