Nuix to co-operate with ASIC investigation into financial accounts

The troubled tech company has notified the market of formal requests for documents relating to the financials going over several years.

Nuix issued a string of earnings downgrades this year. Picture: Getty Images

Australia’s corporate regulator has hit Nuix with notices to produce documents in relation to its investigations into the troubled tech firm.

Nuix updated the market on Thursday afternoon after the Australian Securities and Investments Commission sent notifications to the company.

ASIC is seeking documents relating to its investigations of Nuix’s statements, prospectus and market disclosures.

Nuix said it would “of course co-operate with ASIC’s investigation”.

The tech company said ASIC had requested financial statements of the company for the three years to June 30, 2020. It was also requested to hand over documents relating to its prospectus and market disclosures between December 4 2020 and May 31.

The group listed on the Australian Stock Exchange on December 4 and downgraded its prospectus forecasts in April and May.

Nuix had issued revenue guidance of $193.5m in its prospectus, however this was cut in April to between $180m-$185m. It was again downgraded to $165m-$172m in May.

Thursday’s notification follows an update by Nuix on August 10 when the company noted it had “come to a full understanding” of ASIC’s investigations via notices issued to its auditor PwC.

Nuix declined to comment beyond their brief statement to the ASX.

Ongoing investigations into Nuix and its senior figures have haunted the business for months.

Media were barred from asking questions at the company’s financial results call on August 30, during which only selected investors were given the opportunity.

However, no questions were asked.

The investigation by ASIC comes in the wake of moves by the corporate regulator to block Nuix’s ex-chief financial officer Stephen Doyle and his brother Ross Doyle leaving Australia.

This follows investigations launched into the two Doyle’s on allegations they used offshore holding companies to sell $17.8m in Nuix’s shares.

The Doyle brothers allegedly sold 1.54 million shares on February 12.

ASIC senior lawyer Jenny Truong in an affidavit to the court alleges Mr Doyle “gave to the ASX, or permitted to be given to the ASX, a prospectus including information about the forecast revenue of Nuix for the financial year ending 30 June 2021 that was false or misleading in a material particular”.

ASIC’s case to prevent Mr Doyle leaving the country is due back in the Federal Court on October 25.

The document requests to Nuix on Monday follow ASIC issuing section 19 notices to Nuix and Macquarie executives in June.

Nuix shares were up 0.6 per cent at $2.70 on the ASX on Thursday.