Shares in technology company Getswift Ltd (ASX: GSW) returned to trade from a month-long suspension today, and were dumped by investors. Getswift’s share price fell from $2.92 before its suspension to $1.33 at the close of trade today.
Getswift was originally suspended following a scathing article from Fairfax media asserting that Getswift had lost contracts and failed to notify the market. Getswift was originally unable to confirm that it was in compliance with listing rule 3.1 (continuous disclosure) which is the rule that says companies must keep the market informed of any ‘material’ updates which could influence the company’s share price or an investor’s valuation of the company.
Getswift hired PriceWaterhouseCoopers (PWC) to overview the company’s disclosure policy, and today returned to trade following the confirmation that it was in compliance with listing rule 3.1.
Still, today’s price reaction appears to suggest that the market was not comforted by the company’s additional disclosure, and media outlets continue to express doubt about the company. Several large fund managers including Regal and IFM own large stakes in Getswift. It remains to be seen whether they will sell down following the company’s suspension.
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