Why ELMO, iSignthis, LiveTiles, & Rural Funds shares tumbled lower today

The iSignthis Ltd (ASX:ISX) share price and the Rural Funds Group (ASX:RFF) share price are two of four tumbling notably lower on Thursday…

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In afternoon trade the S&P/ASX 200 index is on course to record a solid gain. At the time of writing the benchmark index is up 0.5% to 6,716.7 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they have tumbled lower:

The ELMO Software Ltd (ASX: ELO) share price is down 5% to $6.19. The catalyst for this decline has been the cloud-based HR and payroll software provider completing a fully underwritten $55 million institutional placement at an offer price of $6.00 per new share. ELMO CEO, Danny Lessem, said: "We are very pleased with the level of institutional support for the raising both from existing and new shareholders, and we welcome our new shareholders to our register. We look forward to the next phase of the company's growth with their support."

The iSignthis Ltd (ASX: ISX) share price has continued its slide and is down a further 20% to 80.5 cents. The payments company's shares have come under pressure this week after a report out of Ownership Matters questioned its accounts. In addition to this, the AFR reported this morning that the company is being taken to court over a share dispute brought by an early investor, David Edmonds, who argues he never received the performance shares owed to him.

The LiveTiles Ltd (ASX: LVT) share price has fallen 6% to 37.5 cents. As with ELMO Software, the catalyst for this decline has been a capital raising. This morning LiveTiles announced that it has successfully raised $50 million via a share placement at $0.35 per share. The proceeds will be used to generate continued strong customer and revenue growth as its targets $100 million in annualised recurring revenue by June 2021.

The Rural Funds Group (ASX: RFF) share price has sunk 12% lower to $1.71 after another short seller attacked the company. This time around a Hong Kong-based advisory firm, Bucephalus Research, has alleged that Rural Funds' assets are being inflated through financial engineering and creative accounting. The report went on to compare the company to a Ponzi scheme that could collapse at any time.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software and RURALFUNDS STAPLED. The Motley Fool Australia has recommended LIVETILES FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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