Diginex Shares Shed 56% in Ten Days as $1.5 Billion All-Stock Deal Fails to Inspire

Diginex shares hit a 12-month low at $1.78, trading 80% below the deal's reference price, as investors doubt the Resulticks acquisition will close by May end.

The market is delivering a brutal verdict on Diginex. A planned $1.5 billion acquisition of marketing technology firm Resulticks, paid entirely in stock, should be a catalyst. Instead, the shares have been in freefall, losing more than 56% over the past two weeks alone.

On Monday, the stock dropped another 5% to $1.78, hitting a new 12-month low. The selling has been so relentless that the relative strength index has plunged to 15, deep in oversold territory. The key support level at $1.82 is now under threat, and if it breaks, there is little in the way of further downside before the next resistance zone near $4.50.

A $10.56 Price Tag Meets a $1.78 Market Reality

The disconnect between the deal's valuation and the market price is stark. Under the terms of the acquisition, Diginex will issue shares to Resulticks' sellers at a reference price of $10.56 per share — a figure adjusted after the company completed an 8-for-1 reverse stock split on April 28. The current market price trades more than 80% below that level.

Investors are clearly skeptical the transaction will close as planned. That skepticism persists despite Resulticks' strong financials. The target company generated roughly $150 million in revenue in 2025 with an EBITDA margin of 32%, and has grown at an average annual rate of about 70% over the past five years. Management is forecasting 2026 revenue of $190 million to $210 million, climbing to $250 million to $280 million by 2027. The operating profit target for 2025 sits between $46 million and $50 million.

Multiple Hurdles Remain Before Closing

The deal is far from done. Diginex must clear several conditions before it can close, including shareholder approval for the share issuance, Nasdaq listing clearance for the new stock, multiple regulatory green lights, and the cancellation of nearly all founder warrants. The company is targeting a closing within 30 to 45 days of signing — meaning by the end of May at the latest. None of the conditions are considered guaranteed.

The reverse stock split reduced the number of shares to be issued from over 1.1 billion to roughly 141.7 million, but even that lower figure values the company internally at a level far above what buyers in the open market are willing to pay.

A Dual Clock Is Ticking

Diginex faces two pressing deadlines. Beyond the end-May target for the Resulticks deal, the company must also demonstrate by September 21, 2026 that it can maintain compliance with Nasdaq's continued listing standards. The current liquidity ratio stands at 3.56, providing some buffer, but with negative earnings and a share price well below the reference value, the margin for error is thin. A sustained fall below $1.00 would trigger delisting proceedings.

Shareholders approved the reverse stock split at an extraordinary general meeting on April 13, with 99.7% of votes cast in favor, representing roughly 44% of eligible shares. Whether the remaining closing conditions can be met by the end of May will determine whether this ambitious restructuring succeeds or stalls.

Restructuring Alongside the Deal

In parallel with the acquisition, Diginex is merging four of its own business units — including Plan A.Earth and The Remedy Project — into a single integrated technology platform. The company appointed a chief operating officer and a chief administrative officer in early April to oversee the integration. The broader strategy is to pivot from a sustainability and compliance platform toward a customer engagement and intelligence offering for large corporations.

Management is expected to unveil a detailed roadmap for its new AI strategy during the second quarter. That presentation will need to attract fresh buyers if the downtrend is to be reversed. For now, the market is voting with its feet, and the gap between the deal's reference price and the trading price has never been wider.