GetSwift Ltd (ASX: GSW) shares have been suspended, this time by ASX Ltd (ASX: ASX), as investors wrap their heads around the latest announcement.
What is Going On With GetSwift?
GetSwift is a $500 million technology company which produces ‘last mile’ software to make deliveries more efficient. The GetSwift website reads:
“Simple software that streamlines your whole delivery business.”
GetSwift is led by Joel MacDonald, a former AFL player turn GetSwift managing director and tech multimillionaire, and Chairman Bane Hunter, “a global executive with over twenty years’ experience in media and financial services.”
The GetSwift share price has shot higher over the past six months as investors were pleased to read repeated promising updates, like major contract wins with the likes of Commonwealth Bank of Australia (ASX: CBA), Amazon Inc (NASDAQ: AMZN), The Fruit Box Company and Fantastic Furniture.
However, some questions were raised by Fairfax Media Limited (ASX: FXJ) last weekend with regards to GetSwift’s disclosure.
“Fantastic Furniture and office delivery group The Fruit Box Company said they never used GetSwift’s last-mile logistics software after an initial trial, despite the company’s ASX announcements about multi-year deals with each.” — Fairfax wrote.
GetSwift: You’re Suspended!
After three days of trading halts and a voluntary suspension, the ASX suspended trading of GetSwift shares.
That’s despite GetSwift making an official response to 28 questions from the ASX.
“GSW refutes the negative claims made in the Australian Financial Review articles and categorically denies that it has failed to report material information in any of the circumstances suggested therein,” GetSwift’s announcement read.
“The Company believes it has carried out its responsibilities with proper diligence regarding the matters raised and has not failed to disclose matters that were required to be disclosed.”
ASX, to GetSwift:
“GSW’s announcement entitled “GetSwift signs The Fruit Box Group (Box Corporate) to a 3 year, 7M+ deliveries contract” lodged on the ASX Market Announcements Platform (“MAP”) and released at 9:29 am on 24 February 2017 (the “Fruit Box Announcement”), disclosing that GSW:
“… is pleased to announce it has signed The Fruit Box Group to an exclusive 3 year contract to optimise and manage their fruit, milk and goods delivery operations nationally.”
“Exclusive contract projected at more than 7,000,000+ total aggregate deliveries.”
“At the time, GSW considered that the addition of The Fruit Box Group as a client could potentially have had a material effect.”
Shortly after GetSwift’s response, the ASX announced:
“ASX Limited (“ASX”) announced on Wednesday, 24 January 2018 that the securities of GetSwift Limited (“the Company”) were suspended from official quotation in accordance with Listing Rule 17.2 pending the Company’s response to ASX’s enquiries.”
“The Company’s securities will continue to remain suspended in accordance with listing rule 17.3, pending further enquiries by ASX.”
What The… is Listing Rule 17.3?
Listing Rule 17.3 is a “suspension not at the entity’s request”.
According to the rules, the ASX will suspend a company’s shares if:
- The entity is unwilling to comply or breaks a rule
- It is necessary to suspend the shares to prevent a disorderly or uninformed market
- ASX rules require the suspension
- It is appropriate for some other reason (e.g. if the transfer of shares would fail because of a technical issue)
This morning’s ASX announcement did not provide an estimate as to when GetSwift shares might return to active trading.
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