Douugh Ltd (ASX: DOU) is reportedly set to announce it will acquire Australian ethical investing app Goodments.
The fintech, which listed on the ASX in October, returned 467% to be crowned the best-performing initial public offer stock of 2020.
The shares sold for 3 cents during the IPO but last traded for 17 cents, after flying as high as 49 cents.
However, the rollercoaster ride for investors came to an abrupt pause on 21 December when the company put a trading halt on its shares. It has since extended the suspension 3 times, making everyone a bit nervous.
The trading halt, Douugh had stated, was regarding the acquisition of an undisclosed company and an enquiry from the ASX.
Now with the shares still suspended, the Australian Financial Review has revealed startup Goodments is Douugh's acquisition target.
Goodments is a share trading app that allows users to only invest in ethical companies aligned with the user's personal priorities.
Image source: Getty Images
A share trading app for the new generation
The app's co-founder Tom Culver told the author back in 2017 that the despair he felt about the Tony Abbott federal government convinced him there was a need for such a platform.
"I realised that governments don't see themselves accountable for the future of our planet and actually it's corporations who are the most incentivised to behave more sustainably," he told Business Insider.
The startup then went through the famous H2 Ventures accelerator program, targeting millennials.
Douugh has had a controversial 3 months on the ASX. While its soaring share price has made IPO investors very happy, the uncertainty of its long-term business has seen the value violently fluctuate.
The company scored a major win back in November, revealing a partnership with Humm Group Ltd (ASX: HUM). But it also raised an unannounced $12 million soon after the IPO, which raised questions from the ASX.
The company has also so far refused to divulge customer numbers.
Douugh shares will remain in a trading halt until Friday, unless it is ready to reveal the news earlier.
