The Financial technology company Splitit Payments Ltd (ASX: SPT) today posted its response to the ASX’s price and volume query raised via a letter dated 11 March 2019.
Splitit stated that it is not aware of any information that has not been released to the market which if known by market participants could explain the recent trading in its securities.
The reply relates to the query raised by the Australian Securities Exchange in which the regulator asked the reason for the recent surge in the price of SPT’s securities from an intra-day low of $0.935 on 4 March 2019 to an intra-day high of $1.95 today.
Digital Payment company Splitit was listed on the Australian Securities Exchange on 29 January 2019 under the Information Technology sector. And since then, the stock has turned three folds demonstrating as high as 326.32% returns. Further, in the past 5-days to 13 March 2019, Splitit’s stock price has surged by 33.33% to the last close at $1.300.
In response to ASX, Splitit clearly stated that it is aware of several recent news articles which explain Splitit’s business model, note that Splitit has recently listed on ASX and comment on Splitit’s business and share price relative to other listed companies in a similar industry, including Afterpay Touch Group Ltd. The company believes that this significant media traction might be the reason for recent trading its securities.
The Group further confirmed that all the price-sensitive information is released in accordance with the listing rules and ASX guidelines. The letter carrying this response to ASX was signed by Mr Charly Duffy, Company Secretary of Splitit Payments Ltd.
More on the business front, Splitit has experienced an active growth in the number of unique shoppers to use Splitit increased by 88,000 or 293% during 2018 to 118,000. The company operates in a rapidly growing digital payment market where it offers its unique interest-free payment solution to the customers. That means the customers can make their purchase and pay over time without any interest using Splitit.
There has also been a significant improvement in clients as the total Active Merchants increased by 205 or 117% during 2018 to 380. The Underlying Merchant Transaction grew by 253% on the previous corresponding period to AUD$80.2 million and average order value sits at over AUD$1,000 at the end of 2018, told Splitit.
The growth in active merchants outlines the Splitit’s easy-to-use payment gateway that enables merchants to offer their customers a simple way to pay for purchases in monthly instalments with instant approval, decreasing cart abandonment rates and increasing revenue. During 2018, Splitit established new merchant relationships in the USA, United Kingdom, France, Italy, Australia and Singapore among others.
Headquartered in New York, Splitit has global business footprints with a Research and Development centre in Israel and offices in London. The company currently plans to establish itself in Australia for its expansion into the Asia-Pacific region.
On 13 March 2019, SPT last traded at $1.300, down 19.753%, with the market capitalisation of $436.84 million.
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