GetSwift is out of its trading halt and its shares are getting smashed

Bruce Bennett/Getty Image
    >Logistics technology company GetSwift’s shares were suspended after reports of problems with some contracts.
  • It started trading again today.
  • The stock fell more than 50%.

Shares in GetSwift, a technology company whose shares were suspended following reports of undisclosed contract issues, were hit hard when they resumed trading this morning.

At the close, they were down 55% to $1.31. Its shares hit a high of $4.60 in December last year.

GetSwift told the ASX that PwC, which had been hired to review the company’s continuous disclosure compliance, has now completed the initial stage of its investigation.

“While PwC is continuing its engagement, GetSwift is comfortable that no further disclosure is required,” the company told the ASX.

The software and logistics company, which helps helps merchants manage their delivery operations, called a trading halt after a report by The Australian Financial Review .

The ASX pinged the company asking for clarification. After the company’s response, the ASX extended suspension of trading in GetSwift shares.

The company “categorically denies” that it had twice failed to update the market about losing materially significant contracts.

The company, with former AFL player Joel MacDonald as CEO, raised $24 million from existing and new investors at 80 cents a share in June last year. 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.

In 2016, MacDonald had a very public falling out with BlueChilli CEO Sebastien Eckersley-Maslin after the latter resigned from the GetSwift board.

The company listed in December 2016, raising $5 million at 20 cents a share for a market capitalisation of $25 million, having aborted a reverse listing earlier that year.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at