GetSwift shares plunge more than 50 per cent after trading halt
Written on the 19 February 2018 by Ben Hall
Shares in GetSwift (ASX: GSW) have been pummelled by more than 50 per cent after the company came out of a near month-long trading halt as it faced ASX enquiries about media reports it breached its continuous disclosure obligations on several occasions.
At the market open on Monday, GSW shares plunged 57 per cent from $2.92 to $1.25 as investors sold out of the stock following a turbulent period for the logistics software company.
GetSwift has been in a trading halt since January 22 and requested the suspension of share trading.
A Fairfax media 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.
A month-long investigation by the ASX found GetSwift did not breach its continuous disclosure obligations.
The company says it has been working with PricewaterhouseCoopers (PwC) 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 $1.25.
Earlier this month, GetSwift announced its newest director had resigned from the board after just two months.
Nevash Pillay was the subject of an ASX query in late January 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.
Ms Pillay was on the GetSwift board when it raised $75 million at $4 a share in December.
GetSwift says it is currently seeking candidates to strengthen its key legal and ASX compliance functions. In the interim, that role will continue to be outsourced to PwC.
Business News Australia
Author: Ben Hall