ASX wrests answers from iSignthis on offshore links – The Australian Financial Review

The June half of 2018 is of added interest given it coincided with escalating revenue hurdles that were ultimately struck in full, and triggered the issue of lucrative, in-the-money performance shares.

The ASX also asked what kind of homework iSignthis did on the four previously undisclosed customers, given ASIC's identification of FCorp and Nona as possible scam operators and unlicensed in Australia.

The corporate watchdog has published warnings on its website that Nona Marketing, also known as FTO Capital could potentially be involved in a "scam". ASIC published a similar warning about FCorp, also known as RI Markets.

The ASX also sought information about Corp Destination, which was only registered as an Australian company in March 2018.

Corp Destination, according to its agreement with iSignthis, is a "quasi cash merchant" to international based customers of two online trading websites linked to contracts for difference, binary options and foreign exchange services.

The company has two named directors according to ASIC filings: one is a 70-year-old corporate lawyer with an Order of Australia, Norbert Schweizer, the other is 43-year-old Constantin Bordeanu, whose registered address is in Bucharest, Romania.

Mr Schweizer, who is based in Sydney, was travelling interstate, and could not be reached for comment according to his office. He did not respond to a separate email inquiry at the time of publication.

As relations between the exchange and iSignthis turn icy, the ASX reminded iSignthis of its obligations under the listing rules, and the penalties for non-compliance. Last week iSignthis fumed at the exchange operator, describing its intervention as "unprecedented".

Shares of iSignthis have been suspended since October 2 amid concurrent enquiries by the ASX and ASIC.

The ASX asserts that the four aforementioned customers accounted for 2,159,666 of revenue in the June 2018 half, none of which were previously identified to the market by name "despite them accounting for more than half of ISXs revenue at the time".

iSignthis "did not release the key terms of these customer agreements because at the time it entered into each agreement the significance of the contract to the company was not known", it replied, disputing the ASX's interpretation of materiality.

Corp Destination was the source of 526,525 in revenue in the June 2018 quarter, and no revenue in the December 2018 half.

FCorp in the course of two separate agreements provided 2141 of revenue in the June quarter and 3737 in the December half; and subsequently 478,500 of revenue in the June quarter and none in the December half.

Nona added 252,500 of revenue in the month of April 2018, none in June, and none in the December half. Finally, IMMO Servis delivered 900,000 of revenue in the June quarter and none in the December half.

"The ASX appears to be concerned with the status of FCorp and Nona in Australia. However, ISX has not done business with these two customers in Australia. ISX was contracted to provide services to those customers in other jurisdictions, not in Australia," iSignthis responded.

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ASX wrests answers from iSignthis on offshore links - The Australian Financial Review