Nuix (ASX:NXL) share price up 5% following update on ASIC investigation

Nuix has released news on ASIC’s investigation into alleged breaches of the Corporations Act.

| More on:
share price up

Image source: Getty Images

The Nuix Ltd (ASX: NXL) share price is gaining this morning after the company released an update on the Australian Securities and Investment Commission’s (ASIC) investigation into its listing.

Nuis has updated the market on ASIC’s investigation into alleged breaches of the Corporations Act. The company first announced it was aware of the investigation on 30 June.

Right now, the Nuix share price is $2.74 apiece, 4.58% more than its closing price yesterday.

Let’s take a closer look at today’s news from the tech company.

The latest on ASIC’s investigation into Nuix

The Nuix share price is up following the company announcing that it now has a better idea of the exact issues ASIC is most interested in, in its investigation into Nuix.

As The Motley Fool Australia has previously reported, ASIC is investigating the company due to concerns Nuix’s prospectus contained false information. Namely, whether its financial forecasts were inflated.

Nuix stated its aware that ASIC is mostly interested in 3 periods of reporting. Those are:

  • Financial statements from Nuix issued between 30 June 2018 and 30 June 2019
  • Nuix’s prospectus
  • Nuix’s market disclosures for the period between 4 December 2020 and 31 May 2021

Between 4 December – the date of Nuix’s Initial Public Offering (IPO) – and 31 May 2021, Nuix released 2 revenue downgrades to the market. In that same time frame, the Nuix share price fell 65%.

Today’s release from Nuix stated:

Nuix has not received any formal notification of an investigation from ASIC and remains confident that it has complied with its accounting and disclosure obligations.

Macquarie Group, Nuix’s largest shareholder and backer of its IPO, recently said its own review into Nuix’s listing found nothing sinister.

ASIC is also investigating the company’s former CFO and their family on allegations of insider trading.

Nuix share price snapshot

It likely comes as no surprise the Nuix share price hasn’t been doing well lately.

It has fallen 65% since it first listed on the ASX late last year.

The company has a market capitalisation of around $831 million, with approximately 317 million shares outstanding.

Should you invest $1,000 in Nuix right now?

Before you consider Nuix, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nuix wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Rising rocket with dollar signs.
Technology Shares

Novonix up 15% on Friday as the market recovers

Novonix appears to be joining in on today's market recovery.

Read more »

A man leaps from a stack of gold coins to the next, each one higher than the last.
Technology Shares

Why is the Block share price leaping 9% on Friday?

Block shares are storming ahead on a good day for the ASX tech sector.

Read more »

Young businessman standing on the top of the mountain punching fist in the air.
Technology Shares

Here’s why the Life360 share price has done a 180 today

Is this driving the software developer's stock higher on Friday?

Read more »

A businessman hugs his computer.
Technology Shares

3 reasons to own Altium shares for the long term

Altium is a quality business and could be worth hanging onto for some time to come.

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech shares I would buy after the heavy sell-off

Here are two ASX tech shares that have taken a battering this year but I think could be compelling ideas.

Read more »

A man in a business suit plunges down a big square hole lit up in blue.
Technology Shares

The BrainChip share price just plunged 8%, what happened?

BrainChip shares were down 8% at one point today. What on earth is going on?

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

What’s happening with ASX 200 tech shares today?

Growth shares are more sensitive to interest rate hikes as they're often priced with distant future earnings in mind.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Technology Shares

This ASX 200 tech share has $380 million in cash and no debt but has fallen 32% this year. Is it a bargain?

Here's what experts are predicting for WiseTech stock.

Read more »