ASX places securities of Zip Co in trading halt

Maria Nikolova

The company, which offers point-of-sale credit and digital payment services, has requested the trading halt pending an announcement in relation to a proposed acquisition and capital raising.

ASX today announces that the securities of digital retail finance and payments services provider Zip Co Ltd (ASX:Z1P) have been placed in trading halt at the request of the company.

The company sought that an immediate trading halt be granted by ASX with respect to its ordinary shares. Zip Co advises that:

  • the trading halt is requested pending an announcement by the company in relation to a proposed acquisition and capital raising;
  • the company wishes the trading halt to remain in place until it releases an announcement in relation to the transactions, or until the commencement of trading on Wednesday, 3 June 2020, whichever is earlier;
  • the company is seeking the trading halt to assist in managing its disclosure obligations and maintaining an orderly market in the trading of the company’s shares, and to ensure that trading does not take place in an uninformed market.

Let’s recall that Zip Co’s latest trading update revealed a set of solid metrics. For the month ending April 30, 2020, Zip Co posted revenue of $15.1 million, up 81% in annual terms ($45m in Q3).

Monthly transaction volume amounted to $181.6 million, up 86% year-on-year. Receivables totalled $1.2 billion, up 97% year-on-year.

Customer numbers increased to 2 million, up 66% from a year earlier, whereas merchant numbers increased to 23,100, up 50% from a year earlier.

Customer repayment success rates were higher or on par with pre COVID-19 rates, with hardship assistance for customers peaking at end of March (less than 0.08% of receivables).

Read this next

Digital Assets

Coinbase CEO says Chase UK’s ban on crypto “totally inappropriate”

Coinbase CEO Brian Armstrong criticized Chase UK’s decision to restrict cryptocurrency-related transactions in the UK. He called the move “totally inappropriate” and expressed his disagreement with the bank’s decision to ban its UK customers from conducting debit card or wire transfers related to cryptocurrencies.

Digital Assets

Binance CZ refutes any connection with CommEX

Changpeng “CZ” Zhao, the founder and CEO of Binance, has denied being the owner of CommEX, the company that reportedly acquired Binance’s business in Russia.

Institutional FX

Refinitiv’s spot FX volumes hit 8-month low

Refinitiv, the former Financial and Risk business of Thomson Reuters, today reported that the average daily volumes (ADV) of currency trading were $424 billion last month on the company’s main FX trading services.

Executive Moves

Integral hires industry veteran Paul Arnold as liquidity manager

Integral, a technology provider to the financial markets’ buy-side, has appointed Paul Arnold, a highly experienced FX industry professional, as its liquidity manager, according to information made public on his Linkedin profile.

Digital Assets

Terraform’s Do Kwon challenges US extradition request

Do Kwon, the crypto entrepreneur and former CEO of Terraform Labs, is opposing the U.S. Securities Exchange Commission’s request to question him about the crash of his company’s stablecoins Terra and Luna.

Digital Assets

Coinbase gets nod to offer futures for retail customers

Coinbase International Exchange has received regulatory approval from Bermuda’s financial regulator, the Bermuda Monetary Authority (BMA), to allow eligible non-US retail customers to trade perpetual futures contracts.

Inside View

How brokers can win the trading tech wars: Insights from iFX EXPO 2023

Last week’s iFX EXPO International 2023, held at the City of Dreams Mediterranean Integrated Resort in Limassol, Cyprus, welcomed a series of insightful discussions. A panel that particularly stood out focused on the role and evolution of trading technology.

Crypto Insider

Web3 Transformation: Radix’s Babylon Update Redefines User and Developer Engagement

Radix Publishing leaps forward in the decentralized world with the release of the Babylon mainnet upgrade, bridging the gap between innovative tech and user-friendly DeFi experiences.

Digital Assets Joins Forces with PayPal and Paxos for Enhanced PYUSD Exchange Experience collaborates with PayPal and Paxos to fortify its position as the premier exchange for PYUSD, marking a significant milestone in the global crypto landscape.