The online retailer, in response to questions from the market operator, said it did not think a poor sales update that sent its stock tumbling was material.
Kogan.com says a poor sales update that sent its shares tumbling more than 27 per cent was not material amid questions from the ASX about the sale of $17.4 million in options by the company’s senior executives just three weeks before the announcement.
Ruslan Kogan, CEO of Kogan.com, is in the firing line over an options sale back to the company weeks out from a poor trading update.The stock soared to $7.90 at the time of the April 4 options sale after Kogan.com told investors profit margins and earnings were strong. Following the poor update later that month, after Mr Kogan and Mr Shafer sold their options, shares fell 27.5 per cent to $5.10.
“Please explain the basis for this view in light of the significant decrease in the price of ‘s securities and analysts’ views reproduced above,” they wrote on May 2.
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