Short Interest in Diginex Collapses 87% Ahead of Resulticks Deal Deadline

The short sellers are scrambling for the exit at Diginex. The number of shares borrowed to bet against the stock has dropped by 87.28% in the latest reporting period, leaving just 1.35% of the free float sold short. The days-to-cover ratio — a measure of how long it would take bearish traders to close their positions — now sits at 0.26.

That retreat comes at a critical moment for the Nasdaq-listed company. Its shares traded between $0.92 and $1.01 on Monday, hovering uncomfortably close to the $1 minimum bid price required to maintain its exchange listing. Since the start of the year, Diginex has lost more than 97% of its value, sliding from around $33 to its current penny-stock territory.

A $1.5 Billion All-Stock Bet

The drop in short interest is no accident. The clock is ticking on the company’s planned acquisition of Resulticks Global Companies, an all-stock transaction valued at $1.5 billion. The closing date has been pushed back to May 29, 2026, after the parties extended the long-stop deadline to complete the deal.

For Diginex, the Resulticks merger represents far more than another acquisition. The target brings in around $150 million in revenue for calendar 2025 and roughly $46 million in EBITDA — numbers that would radically transform the buyer’s financial profile. Resulticks specializes in AI-powered customer intelligence and omnichannel marketing tools, a significant departure from Diginex’s core business of regulatory technology and ESG compliance software.

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The strategic ambition is clear: to pivot from a niche compliance provider into a broader data and AI platform that sits closer to clients’ marketing and decision-making workflows. But the execution risk is equally clear. The deal would push Diginex into new markets with different competitors, budgets, and integration challenges.

A Building Spree Since the IPO

Since listing on the Nasdaq in January 2025, Diginex has been on an acquisition binge, spending more than $100 million in aggregate on three purchases:

• Plan A for $80 million, adding carbon accounting and decarbonization tools
• Matter DK ApS for $13 million, strengthening ESG analytics and benchmarking
• The Remedy Project for $7.6 million, focusing on human rights and supply chain compliance

These transactions all deepened the company’s existing sustainability and reporting capabilities. Resulticks, by contrast, would be a step into adjacent but distinctly different territory.

Chairman and founder Miles Pelham has put his own money where his mouth is. Since the IPO, he has invested $25.4 million into Diginex at an average entry price of $5.69 per share. On top of that, the company has a strategic reseller agreement expected to generate up to $40 million in cumulative revenue over four years, primarily from sustainable RegTech solutions — a contract that runs independently of the Resulticks deal.

Diginex at a turning point? This analysis reveals what investors need to know now.

Deadlines and a New Hire

On May 13, the company appointed Archana Kotecha as Chief Impact Officer, tasking her with embedding human rights and supply chain solutions into its ESG platform. That appointment is part of a broader reorganization that consolidates four operating units — Diginex, Plan A, Matter, and The Remedy Project — under a single management structure.

Looking ahead, management expects that combining Resulticks with the existing business could lift revenue to between $250 million and $280 million by fiscal 2027. The May 29 deadline is the next concrete milestone. If the stock swap closes, the real integration work begins. If it falters or falls through, the low short interest alone won’t be enough to steady a stock that has lost nearly all of its value — and that still needs to stay above $1 to keep its Nasdaq listing alive.

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