GetSwift back on board but shares hammered


Return of share trading occurs after assurance of compliance

GetSwift back on board but shares hammered
Joel Macdonald says GetSwift is comfortable that no further disclosure is required

 

Listed delivery management software firm GetSwift has returned to trading on the Australian Securities Exchange (ASX) nearly a month after its shares were suspended over continuous disclosure issues.

The ASX announced GetSwift’s reinstatement after a market updated and an announcement confirming it is in compliance with listing rule 3.1, which relates to keeping the market informed of events that could be expected to have "a material effect" on its share price.

According to company MD Joel Macdonald, business services firm PricewaterhouseCoopers (PwC), which had been brought in to sort out listing compliance matters, has finished the initial stage of its company review, which involved examining ASX announcements and related enterprise client contracts related to rule 3.1.

"While PwC is continuing its engagement, GetSwift is comfortable that no further disclosure is required and accordingly is please to now confirm it is in compliance with listing rule 3.1," Macdonald says in an ASX disclosure advisory statement.

At 3pm, the company’s shares were trading at $1.32, 55 per cent down on their last closing price.

Since the suspension arose, the company has been at pains to explain how it works, following media scrutiny of its announcements on certain customers’ interest and involvement but lack of subsequent mention of their withdrawal.

In a market update today, the company says it has two client segments, national and multinational enterprise clients and internet-based self-serve clients.

"Typically, contracts for enterprise clients are initially two years in length, with initial periods of testing and integration," GetSwift states. 

"These agreements are attractive to clients due to their specific levels of customisation, and the unique aspect of GetSwift's technology means that client usage normally is expected to increase once implemented.

"Almost 50% of GetSwift's enterprise clients have progressed through to early stages of the revenue generation phase.

"These are primarily comprised of earlier enterprise clients’ contracts.

"Other than as previously disclosed, the majority of announced enterprise clients contracts continue to progress through various pre-revenue generation phases.

"Depending on a client’s existing technology ecosystem, testing and analysis in required before achieving full integration of GetSwift technology."

                                                    

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