Ayondo must make exit offer, appeals SGX delisting notice

abdelaziz Fathi

It may be the end of the listing road for the embattled trading firm Ayondo, which said on Friday that it is reviewing a notice of delisting from the Singapore Exchange (SGX) and intends to make an appeal.

The Singapore Exchange (SGX) said on September 20 it will proceed to delist Ayondo following its failure to comply with criteria to exit from the bourse’s watchlist. The company announced in a filing today that it intends to appeal against this decision as it has not received any proposal or exit offer from any shareholder.

Furthermore, Ayondo explained that it currently does not have the cash resources to consider making an exit offer to its shareholders.

Ayondo, which was the first fintech company to IPO on the Singapore Stock Exchange (SGX), faced working capital deficiency from continued losses. According to its filings, the business was hit hard by regulatory changes relating to product intervention imposed by European and UK regulators.

Shares of Ayondo were halted and then suspended from trading since January 30, 2019, after it faced intense scrutiny over its financial situation, business viability issues, and concerns raised by regulators over its compliance requirements in the UK.

To resolve these issues, Ayondo tried to reduce its liabilities through the sale of its UK unit Ayondo Markets Limited (AML) for £5.7 million to its Netherlands-based white label partner, BUX Holdings. The deal was completed in mid-2019 after Singapore’s regulators had told Ayondo to put on hold its plan to sell AML pending clarity over its financial situation and compliance.

Ayondo offers a broad spectrum of social trading and brokerage services that cover both retail and institutional sectors. The group claims to have 210,000 users from 195 countries on its social trading platform.

Ayondo said earlier this year that due to logistics and delays caused by the COVID-19 virus, it applied to the Singapore bourse to postpone holding its annual general meeting. Its most recent application to extend the submission deadline for a proposal to resume trading has been rejected by the SGX after it sought a further extension of three months to October 31.

On its rationale for the deadline extension, Ayondo said that preparing the statutory audit of the financial statements has been greatly affected after the Singapore government announced a circuit breaker.

Elsewhere, Ayondo’s former interim CEO, Richard Mark Street seeks to get paid for what he claims is an outstanding sum of nearly $40,000 owed by the Catalist-listed Fintech in unpaid salary and the removal of his directorship from the social trading network, GmbH.

Street came on board following an exodus of senior executives, including his predecessor, Robert Lempka. He resigned in 2019, citing pursuing other career opportunities and for personal reasons.

Read this next

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

Retail FX

Hantec Markets wins six categories at Global Retail Forex Awards 2022

Hantec Markets has recently rebranded with a new website and a renewed growth strategy that features the #TimeToStrike hashtag to signify a time of renewed growth for the broker.

<