GetSwift denies claims it failed to update the market on losing big contracts

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ASX-listed technology company GetSwift “categorically denies” a media report that it had twice failed to update the market about losing materially significant contracts.

The company called a trading halt after a report by The Australian Financial Review (AFR).

The ASX had pinged the company, asking for clarification.

After the company’s response, the ASX today extended suspension of trading in GetSwift shares. Sources told Business Insider that the ASX has sent further questions to the company.

“GSW (GetSwift) 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,” the company said today in reply to the ASX.

“GSW takes its compliance obligations seriously. Clearly the integrity of its disclosures is paramount to a successful partnership with its shareholders and the market generally.

“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.”

The logistics software company in June last year raised $24 million from existing and new investors at 80 cents a share.

The money was earmarked to grow “aggressively” into the Americas, Europe and some Asian markets, as well as scale to meet the needs of large multinational customers.

Its shares hit a high of $4.60 in December and last traded $2.92.

The AFR reports says: “It (GetSwift) also jumped the gun on revenue forecasts tied to a Commonwealth Bank of Australia partnership, raising questions about other deals done in 2017 when the company’s share price rose ten-fold.”

GetSwift signed a deal with the Commonwealth Bank in April last year to turn normal retailers into “delivery-ready stores, automatically queuing, batching, routing and dispatching any bought goods”.

Today the company said it has no reason to believe that the Commonwealth will not use the GetSwift platform.

“The company is not aware of any contracts announced to the market that have been formally terminated. Each new client added or each client lost does not necessarily have a material effect,” it said.

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