Diginex Short Sellers Stampede for the Exits as $1.5 Billion Deal Trades at an 87% Discount

Short interest plummets 87% while Diginex stock hits all-time low near $1.37. Market doubts $1.5B all-stock Resulticks deal; Nasdaq delisting threat and legal probe add pressure.

The market is sending two radically different messages on Diginex. Short sellers are covering at the fastest clip in months, yet the stock is plumbing new depths. The disconnect centers on a single binary event: the planned acquisition of AI firm Resulticks, a $1.5 billion all-stock transaction that investors have priced as though it were all but dead.

Short interest in Diginex has collapsed. By the end of April, only 1.35 percent of the free float was still held by bears — an 87 percent plunge from recent levels. Traders who bet against the stock are racing to close their positions after a 65 percent rout in less than two weeks. Market participants often interpret such a mass exodus of shorts as a sign that the worst may be over, but the share price itself has yet to reflect that optimism. On Tuesday, May 12, Diginex closed at around $1.37, recovering about 11.4 percent from the session's low — though the stock had earlier hit a new all-time low of $1.23 on May 11, shedding 10.22 percent in a single day. In the past ten trading sessions, the stock has closed in the red on nine of them.

At the heart of the valuation chaos is the proposed Resulticks takeover. Diginex is offering to pay for the acquisition entirely in newly issued shares, valuing the deal at roughly $1.5 billion. On a post-consolidation basis — after a recent reverse stock split — the reference price set for the transaction stands at $10.56 per share. That is nearly eight times the current market price of around $1.37, implying that investors see a huge gap between management’s vision and the market’s skepticism. The share issuance would add approximately 141.7 million new common shares, diluting existing holders massively unless the combined entity’s value justifies the move.

Operationally, Resulticks brings a compelling set of numbers. The company is expected to generate up to $210 million in revenue this year, according to Diginex’s projections, though an earlier rundown pegs the figure closer to $150 million. Earnings before interest, taxes, depreciation and amortization are forecast at between $46 million and $50 million, representing an EBITDA margin of around 30 percent. Diginex’s deputy chairman, Lorenzo Romano, says the acquisition will transform Diginex into an integrated platform for data activation and AI-driven decision-making, layering real-time data processing onto the existing RegTech and ESG reporting tools.

Yet the market’s skepticism runs deeper than just the price gap. The Schall Law Firm is investigating potential securities law violations at Diginex, adding a layer of legal uncertainty. At the same time, the company is fighting to stay listed on the Nasdaq. The exchange has already flagged Diginex for a closing price that fell below the $1 threshold, and the stock must now trade sustainably above that level to avoid a delisting. With the shares hovering just above $1.20, the clock is ticking.

For now, Diginex remains caught in a high-stakes tug-of-war. The short sellers are fleeing — perhaps anticipating that the Resulticks deal will eventually close and reset the stock’s valuation. But the market is pricing in a wide discount, and every passing day of sub-$1 trading brings the Nasdaq axe closer. The next few weeks will determine whether the bears were right to get out, or whether the real pain is still ahead for shareholders betting on the AI pivot.