iSignthis Limited

Baltic Banking acquisition by iSignthis: iSignthis Limited (ASX: ISX) is a leading emoney, payments and identity technology company, publicly listed on the Australian Securities and Frankfurt Stock Exchange. On 15 February 2019, the group announced that it has acquired 100% of the share capital of UAB Baltic Banking Services (BBS). Following this announcement, the share price of the company decreased by 7.143% on 15 February 2019. Under the deal term, the Company will issue ordinary share on 28 February 2019 which will be converted to AUD$ at the RBA spot of €75k at the entire February monthly VWAP (Volume Weighted Average Price), plus a €75k payment (initial payment). Furthermore, the payments company will provide an extra cost which will be based on the future performance of BBS, with a cap of €1.5 million. This payment will likely be dependent upon the bank’s earnings earlier than earnings before income tax (EBIT) as of 31^st December 2019. Lithuania based BBS has developed specialised banking software such as SEPA GATEWAY and the Probanx CorePlus banking platform which along with ISXPay and Paydentity, will create a fully integrated solution for banks, emoney institutions, and wallet operators. iSignthis will also benefit by getting access to the Central Bank of Lithuania’s (“CBL”) CENTROLink service, which will allow it to improve 2019 EBIT. In another update, the company has received more than 12 applications from Australian domiciled merchants for ISXPay’s transactional banking capabilities mainly in Merchant Category Codes (MCC) 6211 (Equities/CFD/FX), with some MCC 7995 (Gambling). Its application to obtain ADI (Authorized deposit taking) license is under process, and its Probanx.com CorePlus got clearance from Grant Thornton & Security Centric.

In its announcement on date February 11, 2019, it informed about cancellation of around 3,050,877 unlisted options, which were set to expire on February 8, 2019.


Operating Revenue Trend (Source: Company Reports)

On the financial front, the company reported an increase of around 362.3% in its revenue to A$6.34 Mn in FY2018 from A$1.37 Mn in FY2017 whereas it reported a loss of A$5.53 Mn in FY2018. Its trade receivables increased by 50.4% to A$1.23 Mn in FY2018 from A$0.82 Mn in FY2017 whereas its trade payables increased by 347.2% to A$2.58 Mn in FY2018 from A$0.58 Mn in FY2017. Meanwhile, the share price has risen 39.29% in the past three months as at 15 February 2019 and trading close to 52-week higher level. As per the technical analysis, oscillators such as RSI and Stochastic indicates stock price to be in the over-bought region. Based on foregoing, we give a “Sell” recommendation on the stock at the current market price of A$0.195 and we suggest to the investors that they should book the profit at higher levels.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.