GetSwift director resigns as shares remain in trading halt
Written on the 6 February 2018 by Ben Hall
Shares in GetSwift (ASX: GSW) remain in a trading halt as the under-fire logistics software company announced its newest director had resigned from the board after just two months.
Nevash Pillay was the subject of an ASX query last week to GetSwift regarding a late submission to a change of director's interest notice as the company's two-week trading halt continues while it addresses concerns about its disclosure obligations and compliance with listing rules.
"While Ms Pillay's time with the company was relatively brief, it was during a challenging period," the company said in a brief statement to the ASX.
Ms Pillay was on the GetSwift board when it raised $75 million at $4 a share in December.
GetSwift has been in a trading halt since January 22 and requested the suspension of share trading until it responds to ASX enquiries about a Fairfax Media report it breached its continuous disclosure obligations on several occasions.
The Australian Financial Review report which was headlined 'GetSwift: Too Fast For Its Good' claimed that in addition to not disclosing the loss of two contracts, the company had released revenue forecasts prematurely from a deal it announced with the Commonwealth Bank of Australia, with CBA saying the GetSwift software was not yet in pilot phase.
Investors in GetSwift are waiting for the company's response to queries from the ASX, around whether the company has failed to report material information and breached listing rules.
The company announced it would issue a response to the ASX last Friday but failed to do so and says it is working with PricewaterhouseCoopers to review its compliance procedures.
In December, GetSwift, which is run by executive chairman Bane Hunter (pictured left) and former AFL player and entrepreneur Joel McDonald, closed one of the biggest tech raises in 2017, securing an oversubscribed placement of $75 million in new capital.
The capital raising included strong support from existing investors, as well as new Australian and American institutional investors.
In December 2016, its IPO was launched at $0.20 a share. Its shares soared tenfold in 2017 before dropping from $4.60 to the current price of $2.92 when it last traded.
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Business News Australia
Author: Ben Hall