The Douugh Ltd (ASX: DOU) share price traded lower today after the smart bank account provider posted a remedial action update. At the time of writing, the Douugh share price finished 3.13% lower to 16 cents per share. Which appears particularly poor when compared to the 0.78% gain in the S&P/ASX 200 Index (ASX: XJO).
Today's disappointing performance appears to stem from the company's completion of remediation following the breach which came to light in early January. In short, during Douugh's ASX listing, the parents of one of the company's directors, Bert Mondello, were issued shares without shareholder approval.
Actions complete, Douugh share price damage remains
This speculative growth-share has been on a rollercoaster since listing. Within 10 days from making its ASX debut, Douugh's share price increased fivefold from 6.8 cents to 34.5 cents a share. However, the following months have been marred by various listing breaches. As a result, the company's latest announcement looks to lay to rest the breach shares incident.
According to the release, the company obtained relevant shareholder approvals to undertake a selective capital reduction of the breach shares. More importantly, the breach shares held by the director's parents were sold on-market with all profits being donated to registered charities. The net profits from the disposal totalled $252,291.
Lastly, Douugh advised it continues to consider making changes to the composition of the board to hold the appropriate mix of qualifications, experience, and expertise. An outcome of this is expected from the company prior to its next quarterly report, 30 April 2021.
Despite these actions, the Douugh share price has lost roughly 43% since the breach revelations arose. Shareholders appear to have not found much solace in the company's directors completing an ASX listing rules compliance course.
Recent developments
Lost in all the tribulations are the company's latest developments in delivering on its financial wellbeing experience. Here's a quick summary of recent events:
- Douugh acquires millenial-focused investing app Goodments – 6 January
- Launches 'self-driving' money management feature called Autopilot – 9 February
- Reports strong growth metrics in 3 months since launch, reaching 8,001 customers – 18 February
- Launches instant virtual card provisioning with Mastercard – 11 March
Even with the company making efforts to move forward, the Douugh share price has continued its downward trend. As a result, the company's market capitalisation now stands at $57.5 million.
