Ensogo, the struggling daily deals ecommerce company, saw today its trading suspended on the Australian Securities Exchange (ASX) pending an announcement.
Formerly known as iBuy and founded by entrepreneur Patrick Grove, Ensogo owns a network of ecommerce websites in Hong Kong, Singapore, Malaysia, the Philippines, Indonesia, and Thailand. The company has been experiencing a decline in share price down to nearly zero this year.
The trading halt follows the resignation of two Ensogo directors (Thomas Baum and Frederique Covington) as well as the selloff by a big shareholder. On May 24, The Australian reported that Macquarie offloaded 2.3 million shares in Ensogo for A$0.50 apiece, marking a 50 percent discount to its closing price at the time.
Ensogo has been embroiled in controversy after its merchants complained about delayed payments starting in April this year.
The Australian bourse said the suspension would remain in place until the opening of trade on Tuesday, June 21 or when the announcement is released to the market. The news comes less than a year Groupon shuts down in 7 countries including Thailand and Philippines in Southeast Asia, signalling the start of ‘deal fatigue’ among consumers that lowers re-purchase rates and thus customer lifetime value.
A version of this appeared in Tech in Asia on June 17. Read the full article here.