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- Douugh (DOU) has commenced trading on the ASX, after finalising its reverse takeover of fellow fintech start-up ZipTel
- In preparation for the listing, the company closed its inaugural $6 million capital raise last Thursday and re-listed Ziptel’s long suspended shares after trading closed on Monday
- While similar to a modern neobank, Douugh describes its AI-led proprietary app as a “financial wellness platform”, which helps users manage their finances more effectively
- While the app isn’t yet widely available, the company is currently conducting trial programs in the U.S. and expects to launch in Australia sometime next year
- Before the market opens, shares in Douugh are valued at 1.7 cents
Douugh (DOU) has commenced trading on the ASX, after finalising its reverse takeover of fellow fintech start-up ZipTel.
In preparation for the listing, the company closed its inaugural $6 million capital raise last Thursday and relisted Ziptel’s long suspended shares under the ticker code “DOU” on the ASX after trading closed on Monday.
While similar to a modern neobank, Douugh describes its AI-led proprietary app as a “financial wellness platform” which helps users manage their finances more effectively.
While the app isn’t yet available widely available, the company is currently conducting trial programs in the U.S. and expects to launch in Australia sometime next year.
The former telecommunications business ZipTel announced its intension to purchase Douugh back in March and finalised the deal in late August.
ZipTel issued the owners of Douugh 275 million ordinary shares, 75 million performance shares, and 75 million unlisted options exercisable at four cents each.
In order to validate the first of the three performance shares tranches, the company will need to acquire 10,000 customer accounts or pull in $100,000 in monthly recurring revenue for three consecutive months within three years from the relisting date.
To convert the next two tranches the performance target jumps to 12,500 customer accounts or $125,000 within three years and then 25,000 customer accounts or $250,000 within three years.
In the lead up to its listing, Douugh claims to have received compelling interest from investors surrounding its recent capital raise. However, with Australian fintech stocks waning in recent weeks, how strongly the company will fair in its opening days remains to be seen.
Before the market opens, shares in Douugh are valued at 1.7 cents.
