GetSwift shares have remained suspended as the logistics software firm denied a report it failed to tell shareholders about the loss of materially important contracts.
The firm, whose shares have not traded since Monday following a Fairfax Media report alleging it breached its continuous disclosure obligations, told the Australian Securities Exchange it denied any wrongdoing.
‘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 said in a letter to the ASX.
‘GSW takes its compliance obligations seriously.’
Founded by former Brisbane and Melbourne AFL player Joel MacDonald in 2014, GetSwift offers software that allows companies to track and organise their delivery fleets.
In its report The Australian Financial Review said GetSwift made premature revenue forecasts related to a deal with the Commonwealth Bank in 2017, and announced deals with Fruitbox and Fantastic Furniture that those companies have since said did not progress past trial stages.
In its emailed response to an ASX query – dated Wednesday and made public on Thursday – GetSwift said the share price movement following the initial announcement of a deal with Fruitbox suggested that the market did not consider it to be a significant transaction.
GetSwift shares rose 4.35 per cent the day it announced the Fruitbox deal on February 24, 2017, but gave up those gains and more two trading days later.
They rose 1.5 per cent on the Fantastic Furniture announcement on August 23, but fell back 0.5 per cent the next day.
It told the ASX it would not have announced the Fantastic Furniture deal, with only its timing alongside an agreement with another firm making it significant.
‘The company considered that the addition of both Betta Home Living and Fantastic Furniture as clients could potentially have had a material effect,’ GetSwift said.
‘However, if just one of those new clients had been added at that time, in isolation, the company considers that information would not have had a material effect.’
It added that it understood the Fantastic Furniture deal could resume, and that the CBA deal – the announcement of which hoisted its shares 49 per cent on April 4 – was still live.
‘GSW has no reason to believe that CBA will not use the GSW platform,’ Getswift said.
In December, shares in GetSwift were suspended from trade for a day after it announced a global agreement with Amazon that provided no further information.
Its shares soared more than 80 per cent before the ASX stepped in and requested more detail from the company.
Getswift shares dropped 6.7 per cent on Monday to $2.92 before being suspended from trade.