ASX-listed technology company GetSwift, which has been in a trading halt since Monday, has suspended trading in its shares following reports of lost contracts.
The company called a trading halt after a report by The Australian Financial Review that the company had failed to update the market on the loss of significant deals.
Today, the company told the ASX: “As a result of recently receiving request for responses from ASX, the company hereby requests that its securities be placed into voluntary suspension pending a response being provided.”
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.
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”.
The Financial Review reports that GetSwift jumped the gun on revenue forecasts tied to a Commonwealth Bank partnership, “raising questions about other deals done in 2017 when the company’s share price rose ten-fold”.
The newspaper said: “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.”
The company, led by former Brisbane and Melbourne AFL player Joel Macdonald, went through a turbulent 2016 when it fell out with early backer BlueChilli.