Douugh (ASX:DOU) share price dips on remedial action completion

The Douugh Ltd (ASX: DOU) share price continues to weaken after the company announced the completion of its remedial actions.

| More on:
A hand moves a building block from green arrow to red, indicating negative interest rates

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Douugh Ltd (ASX: DOU) share price traded lower today after the smart bank account provider posted a remedial action update. At the time of writing, the Douugh share price finished 3.13% lower to 16 cents per share. Which appears particularly poor when compared to the 0.78% gain in the S&P/ASX 200 Index (ASX: XJO).

Today's disappointing performance appears to stem from the company's completion of remediation following the breach which came to light in early January. In short, during Douugh's ASX listing, the parents of one of the company's directors, Bert Mondello, were issued shares without shareholder approval.

Actions complete, Douugh share price damage remains

This speculative growth-share has been on a rollercoaster since listing. Within 10 days from making its ASX debut, Douugh's share price increased fivefold from 6.8 cents to 34.5 cents a share. However, the following months have been marred by various listing breaches. As a result, the company's latest announcement looks to lay to rest the breach shares incident.

According to the release, the company obtained relevant shareholder approvals to undertake a selective capital reduction of the breach shares. More importantly, the breach shares held by the director's parents were sold on-market with all profits being donated to registered charities. The net profits from the disposal totalled $252,291.

Lastly, Douugh advised it continues to consider making changes to the composition of the board to hold the appropriate mix of qualifications, experience, and expertise. An outcome of this is expected from the company prior to its next quarterly report, 30 April 2021.

Despite these actions, the Douugh share price has lost roughly 43% since the breach revelations arose. Shareholders appear to have not found much solace in the company's directors completing an ASX listing rules compliance course.

Recent developments

Lost in all the tribulations are the company's latest developments in delivering on its financial wellbeing experience. Here's a quick summary of recent events:

  • Douugh acquires millenial-focused investing app Goodments – 6 January
  • Launches 'self-driving' money management feature called Autopilot – 9 February
  • Reports strong growth metrics in 3 months since launch, reaching 8,001 customers – 18 February
  • Launches instant virtual card provisioning with Mastercard – 11 March

Even with the company making efforts to move forward, the Douugh share price has continued its downward trend. As a result, the company's market capitalisation now stands at $57.5 million.

Should you invest $1,000 in Dicker Data right now?

Before you buy Dicker Data shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Dicker Data wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Mitchell Lawler owns shares of Douugh Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »