GetSwift to call Canada home
4 September 2020, Written by Business News Australia
Software group GetSwift (ASX: GSW) has announced plans to re-domicile in Canada in order to realign its business with the North American market.
As part of the move, the company will list its new holding company, GetSwift Technologies Limited ("Holdco"), on the NEO Exchange in Canada, and delist from the ASX.
The company says being based in North America will open it up to new opportunities, considering a significant proportion of its customers and shareholder base are located there.
Further, the company hopes the move will position it for continued international growth and increase the attractiveness of the company to a broader range of investors in a market more likely to invest in early to mid-stage technology companies.
If the re-domiciliation is implemented, Holdco will acquire all of the shares in GSW and become the new holding company of GetSwift and its subsidiaries.
Current GSW shareholders will receive one Holdco common share for every seven GSW shares they hold as at the record date for the scheme.
"We have made no secret of the fact that our customers and shareholders across North America have supported our focus on the region with increased business and continued investor support," says GetSwift CEO Bane Hunter (pictured left).
"Our focus on the world's leading markets as we continue seeking growth in all regions is simply good for business."
The company's board has unanimously recommended that all shareholders vote in favour of the proposal at a meeting expected to be held in early November 2020.
Earlier this year GetSwift continued on its acquisition path by purchasing the majority stake in Serbia-based IT firm Logo d.o.o. for 5.5 million euros (AUD$9.1 million).
The acquisition came a year after GSW purchased two US businesses Delivery BIZ Pro and Scheduling+ for $8.2 million, catering to the North American market where the majority of new customers were acquired in the 2019 fiscal year.
The company is also currently embroiled in a long-running class action lawsuit in relation to ASX announcements made in 2017 about high-profile deals that sent GSW stock skyrocketing.
Business News Australia
Author: Business News Australia