ASIC drops one Nuix investigation, but market disclosure probe continues

The corporate watchdog wraps up its investigation into Nuix’s IPO prospectus, but continues to review the embattled tech firm’s market disclosure.

ASIC has wrapped up its investigation into Nuix’s financial statements and float prospectus, but continues to review the embattled tech firm’s market disclosure. Picture: Bianca De Marchi/NCA NewsWire

Troubled tech player Nuix has one less battle to fight after the corporate regulator told the company it would not take any action over its pre-listing financial statements. But it continues to probe its market disclosure.

In an update to the market, Nuix said it had been told on Thursday that the Australian Securities and Investments Commission had finalised parts of its investigations into the company.

ASIC had been reviewing Nuix’s financial statements for the periods ending 30 June 2018, 30 June 2019 and 30 June 2020, and in relation to the company’s initial public offering prospectus, dated 18 November 2020.

This comes after ASIC launched an investigation into the firm after its torrid launch on markets, which saw shares rapidly slide in the wake of earnings downgrades and missed targets.

This came just months after hitting the ASX trading boards in December 2020.

However, Nuix noted “the aspect of ASIC’s investigation relating to Nuix’s market disclosure in the period since listing is not yet complete”.

“Nuix continues to co-operate fully with these investigations,” the company’s board told the market.

An ASIC spokesman confirmed Nuix had been sent a letter of no further action on Thursday, but noted investigations continued.

“Other than confirming that we have provided that information to Nuix regarding that particular investigation, we are unable to comment,” he said.

“Please bear in mind that other matters remain under investigation.”

Nuix is facing a litany of legal issues, with its former chief executive suing the company, alleging it failed to honour his options in shares in the business prior to its IPO.

The company’s Sydney offices were raided by Australian Federal Police in June last year as part of investigation into Nuix’s former chief financial officer Stephen Doyle.

ASIC seized company records as part of its raid, which is investigating allegations Mr Doyle and his brother Ross Doyle conspired to trade shares in the company while in possession of market sensitive information.

The corporate regulator revealed on Monday that it had examined Ross Doyle in relation to the alleged $17.8m insider trading case.

The Federal Court moved on Monday to extend travel controls on Mr Doyle, after ASIC noted it may seek to re-examine him in the wake of him handing over documents to the regulator in December.

However, sources close to the case note ASIC’s examinations likely did not stop at Ross Doyle and several other Nuix figures may have been examined by the regulator as part of its investigations.

ASIC’ current investigations are understood to focus on matters that have come to light subsequent to Nuix’s IPO and listing in December 2020.

A Nuix spokeswoman declined to comment.