The last 48 hours have been a rollercoaster for the share price of iSignthis (ASX: ISX).
After hitting a high of $1.66 on 11 September it suddenly crashed to a low of $0.99 the following day.
The initial spike can be attributed to the company's market update for gross processed transaction value (GPTV), which on an annualised basis exceeded $1.1 billion, up 160 per cent on June.
The speedy rise and dramatic crash of its share price has caught the attention of the ASX, which has sent a letter to iSignthis asking them to explain what happened.
The company says that it is not withholding any price sensitive information.
Instead it blames a report authored by James Samson and Dean Paatsch from Ownership Matters for its sudden dive in share price.
iSignthis says this report was circulated to company shareholders and other parties.
The report questions the release of performance rights over 337 million shares to top executives worth more than $500 million.
Ownership Matters was formed in Melbourne in 2011 by a group of former ISS Governance Services analysts. The research company provides a governance advisory service for institutional investors.
Melbourne-based iSignthis says in response to the ASX query that Ownership Matters published its report without seeking comment from the company.
"The company also firmly rebuts the allegations that the ownership of iSignthis Ltd is "opaque", with full disclosure of director interest and substantial holder interests having been made to the ASX per continuous disclosure requirements," says iSignthis.
The company also says that it has referred the matter and conduct of Ownership Matters to the Australian Securities and Investment Commission.
Business News Australia