Investigations into director trades across DigitalX, a publicly-traded digital currency company operating on the ASX, reveal the company denying any policy violations.
DigitalX Under ASX Scrutiny Over Share Dealing and Related-Party Transactions
DigitalX, an ASX-listed digital asset investment manager, is currently under investigation by the Australian Securities Exchange (ASX) over concerns regarding share dealings and transactions involving its director, Ieva Guoga, and her father, Antanas "Tony G" Guoga, a major shareholder in the company.
On September 5, DigitalX has scheduled a shareholder meeting to vote on issuing shares and warrants to Ieva and Antanas Guoga as part of a related-party placement. This move has raised eyebrows, as the ASX has expressed concerns about the timing of Guoga's share purchase, specifically ahead of a May 29 announcement regarding an $11.6 million Solana token acquisition.
DigitalX, however, has denied suggestions of policy breaches following the query. The company asserts that the trades complied with its securities trading policy and ASX listing rules. According to DigitalX, Ieva Guoga sought trading approval but was unable to log in due to system updates, and the announcement was deemed non-price sensitive by the company.
The ASX is reportedly concerned about the nature of transactions involving Ieva Guoga and her father, Antanas Guoga. It has allegedly asked DigitalX to explain the timing of Guoga's share purchase and the dealings involving her father.
Antanas Guoga, a former member of the European Parliament and ex-professional poker player, is DigitalX’s largest shareholder with about 15% of the company. He also chairs Canadian-listed SOL Strategies, which has an exclusive 12-month deal to provide Solana staking services to DigitalX.
Guoga has been involved in facilitating funding deals for other ASX-listed companies. He recently facilitated a funding deal for ASX-listed biotech firm Opyl, providing a non-dilutive loan to finance the purchase of Bitcoin for its treasury via the DigitalX Bitcoin ETF, where Guoga serves as a non-executive director.
In response to the ASX's queries, DigitalX plans to tighten its processes. The company has announced plans to boost its Bitcoin treasury from 500 BTC to 2,100 BTC by 2027 under its "21 Hundred" strategy, positioning Bitcoin as the core of its treasury.
It is important to note that the ASX has not responded to requests for comment regarding the current situation with DigitalX. The company maintains compliance with securities trading policies and listing rules amid the ASX's query, citing procedural issues and the non-price-sensitive nature of the announcement as justification for no breach. The situation is currently under ASX scrutiny, with the company publicly defending its conduct.
[1] DigitalX's securities trading policy outlines approved trading windows and requires directors to get clearance from senior officers before buying or selling shares.
[2] The policy is designed to ensure trades are carried out only when there is no undisclosed information that could affect the share price.
[3] The ASX-listed company has denied breaching its securities trading policy and ASX listing rules regarding recent director share dealings.
[4] DigitalX reiterates its commitment to transparency and adherence to regulatory requirements as it navigates this period of scrutiny.
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