Why Afterpay’s Share Price Up by 5.3% Today| ASX:APT
After releasing an update on its dealings with AUSTRAC, Afterpay Touch Group Ltd [ASX:APT] has seen its share price push over 5% higher this afternoon.
The fintech giant also revealed news regarding its share purchase plan (SPP), as well as an update on its internal share sales.
It’s likely that, above all, investors will be glad to see Afterpay co-operating with AUSTRAC on a workable compliance plan.
What was in Afterpay’s announcement?
Afterpay Group has said that it has now provided AUSTRAC with the details of three candidates who can conduct the external audit of its Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) program.
News was also shared that a dutiful sub-committee has been established. This team will be in charge of assisting and reporting to the Afterpay board in relation to the management of the external audit process. It will engage with AUSTRAC, while also taking care of other AML/CTF matters.
The sub-committee will be led by independent non-executive director Elana Rubin.
Afterpay is taking to the project with gusto, declaring ‘it welcomes the opportunity to continue to work closely and constructively with AUSTRAC and will approach this formal process as an opportunity to ensure that our AML/CTF compliance is robust.’
Forget compliance, what about the numbers?
The popular payment solution provider’s plan to raise a further $30 million at $23.00 per share via a share purchase plan (SPP) has been postponed in the short term.
The release this morning defends the decision as ‘in the interests of shareholders…until the Company has considered the final audit report and its recommendations.’
On a share sale note, Afterpay also noted that its co-founders (who recently offloaded a boatload of shares) wouldn’t be selling any more shares during FY 2020.
Instead, they are ‘fully committed to the business and remain excited as ever by the potential to build an Australian listed global technology company that is focused on delivering a customer-centric and trusted service to a global audience.’
It’s clear the folks at Afterpay are determined to make great strides ahead and at least they’re not scrimping on compliance.
For Money Morning
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