What is happening with the Douugh (ASX:DOU) share price?

The Douugh Ltd (ASX:DOU) share price has gone nowhere over the last couple of weeks. Here's why…

The Douugh Ltd (ASX: DOU) share price won't be going anywhere on Tuesday after the fintech company requested yet another extension to its suspension.

questioning whether asx share price is a buy represented by man in red shirt scratching his head

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What is happening with the Douugh share price?

On 21 December Douugh requested a trading halt pending the release of an announcement. This was in relation to the proposed acquisition of a millennial-focused investing company. The company's shares were due to return to trade within two days.

However, instead of returning to trade, on 23 December the company requested a voluntary suspension until 29 December. This was requested pending the release of the aforementioned announcement and also to give it time to "respond to an unrelated query put to it by the ASX."

Well, as you might have guessed, 29 December came and Douugh's shares failed to return to trade. Instead, the company requested a further extension to its voluntary suspension until today ­– 5 January.

But lo and behold, Douugh has now requested that its shares remain suspended until Friday 8 January.

Once again, Douugh explained: "The Company requests the voluntary suspension until after an announcement by the Company in relation to the proposed acquisition of a millennial-focused investing company. The Company will also respond to an unrelated query put to it by ASX."

What is the query?

Unfortunately, no details have been provided about the ASX query the company has received.

Though, all will eventually be revealed once its shares finally return to trade. But judging by the lengthy suspension, it appears to either be a complex query or Douugh's response has not been deemed sufficient by the ASX.

Shareholders will no doubt be hoping this doesn't turn into another iSignthis Ltd (ASX: ISX) situation. The controversial payments company's shares have been suspended for over a year now.

However, like iSignthis, there are a lot of question marks over the Douugh business. Particularly given how the company was marketing itself as a neobank for some time before acknowledging that it wasn't actually one.

At present, the company is one of a growing number of financial apps you can find on Apple's App Store. It remains unclear how many users the company has using its app at present.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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