ayondo in negative equity position after recognising CHF49.8m gain in Q3

FINTECH company ayondo Ltd has recognised a gain of 49.8 million Swiss francs (S$68.5 million) in the third quarter to September, as a result of deconsolidation of its subsidiary ayondo Holdings AG (AHAG). But it is in a negative equity position with current liabilities of 2.3 million Swiss francs.

The Catalist-listed ayondo's results for the quarter, released on Dec 6, showed that its recognition of a 49.8 million Swiss franc gain has resulted in a profit of 49.6 million Swiss franc for its equity holders. The company has had no trading revenue, however.

The company in its filing with the bourse operator said that "there were minimal operating activities" following the disposal of its key operating subsidiary ayondo Markets and the commencement of insolvency proceedings in August of its other subsidiaries ayondo GmbH and AHAG. 

Notably, current assets - all in cash and ash equivalent - of 123,000 Swiss francs were less than total current liabilities of about 2.3 million Swiss francs. Also, it was in a negative equity position of 2.2 million Swiss francs while net assets value per share was minus 0.42 Swiss franc cent as at Sept 30.

The unaudited financial results for the quarter has been prepared on a going concern basis, said ayondo. "The validity of the going concern basis on which the unaudited financial statements for 3Q2019 are prepared, is subject to the successful completion and issuance of the convertible notes announced on Aug 22."

Post-deconsolidation, ayondo only consists of the company itself and no subsidiaries.

Shares of ayondo have been suspended from trading since Feb 1.