GetSwift suspends share trading to respond to media allegations
Written on the 24 January 2018 by Ben Hall
GetSwift (ASX: GSW) has requested its shares be suspended amid media reports the logistics software group failed to tell investors it had lost key contracts.
GetSwift has been in a trading halt since Monday, 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.
In a statement to the ASX, GetSwift says it expects to respond to the allegations before the market opens on Thursday.
The Australian Financial Review report which was headlined 'GetSwift: Too Fast For Its Good' revealed 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.
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 on Friday.
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Business News Australia
Author: Ben Hall