New Zealand stock market watchdog warns about trading in AI company

Being AI reverse listed on the NZX this week and has caught the attention of the stock market regulator NZ RegCo.

New Zealand’s stock market rule enforcer is warning investors about trading in listed company Being AI after its share price increased more than threefold since it listed at the start of the week.

In a statement to the market on Friday, NZ RegCo said it was urging investors and potential investors to exercise caution when dealing in the shares of Being AI.

Being AI’s share price has risen from 1.7 cents on Tuesday to 7.5 cents currently, an increase of 341 per cent.

On Thursday, NZ RegCo issued a price enquiry to Being AI, asking it to confirm it was not in possession of any material information that had not been disclosed to the market, and that it remained in compliance with the continuous-disclosure rules.

Being AI confirmed it remained in compliance with listing rules.

The company listed on Tuesday, following a reverse listing transaction, becoming the first NZX listing of the year.

But its debut was marred by a malfunction in a broker ordering system.

Under the reverse listing transaction, the Being AI group of companies was acquired by Ascension Capital following shareholder approval on March 28.

The acquisition of the Being AI group of businesses was undertaken at a valuation equivalent to 2.5 cents per share, NZ RegCo’s statement said.

An independent appraisal report published on that transaction concluded the terms and conditions of the transaction were fair.

That assessment included the profile and valuation of the Being AI group businesses being acquired, NZ RegCo noted.

“Investors are strongly urged to access and consider the information relevant to the recent reverse listing transaction of Being AI, in support of any investment decisions.”

That information included the listing profile of the Being AI Group, and the independent appraisal report.

Being AI has three divisions: an early-stage AI consultancy business, a research and development engine to advance AI, and a venture investment and accelerator arm.