Troubled tech company GetSwift (ASX: GSW) is set to bring an end to their time on the ASX after several controversial years, with plans to re-domicile to Canada at a time when an impending class action against the Company is set for trial.
The former market darling which listed on the ASX in December 2016 at an IPO Offer Price of $0.20 per share quickly shot up the boards. Headed by former AFL player Joel MacDonald as Co-Founder and Managing Director, GSW shares traded as high as $4.30 in December 2017 at which point GetSwift secured $75 million from investors via a capital raise at $4.00 per share.
Following the capital raise however, things unraveled for GetSwift when it was revealed that partnerships announced with Tier 1 clients including Commonwealth Bank of Australia, The Fruit Box and Amazon, were in-fact not generating any revenue for the Company. By February 2018, shares swiftly fell to $0.70.
Plans have now been announced for GetSwift to delist from the ASX and re-domicile to Canada’s NEO Exchange with all GSW shares undergoing a Scheme Implementation Deed where shareholders will receive 1 Holdco share for every 7 GetSwift shares held.
The NEO Exchange has conditionally approved the listing of the Holdco Shares on the NEO Exchange but the departure from Australia should come as no surprise with GetSwift having already focused its operations in the North America where the Company is headquartered in Denver, Colorado. Alongside their North American expansion, ASX investors have been preparing a Class Action against GetSwift arguing they were misled to invest in the Company as a result of ASX disclosure breaches.
“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,” said GetSwift CEO, Bane Hunter.
“Our focus on the world’s leading markets as we continue seeking growth in all regions is simply good business.”
Offering a tech platform to manage delivery services, GetSwift’s software provides end-to-end management of customer deliveries which can be integrated with other business functions including supply chain management, delivery drivers and customer interfaces.
Through the financial year ending 30 June, 2020, GetSwift has been accelerating its North American operation where they delivered $26.5m in revenues which represented a 596% increase on the previous corresponding year. Revenue from North America represented 54% of total revenue which came from more than 100 different countries.
Despite the increase in revenues, GetSwift reported a net loss of $31.1m which the Company attributed to fully expending all research and development costs.
As part of their expansion across North America, GetSwift tripled its employee headcount through FY20.
The Class Action trial against GetSwift is listed to commence on 14 September 2020 with shareholders being represented by Phi Finney McDonald.
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