Former AFL footballer Joel MacDonald’s delivery software and logistics startup GetSwift has recommenced trading on the ASX this morning, returning from its two-week long trading halt and seeing its shares plunge 60% almost instantly in a vote of no confidence from investors.
The shares were placed in a voluntary trading halt at the end of January after numerous questions about the startup’s market disclosure practices were raised, with the Australian Securities Exchange (ASX) asking the company to clarify the extent of its partnerships with companies such as Commonwealth Bank and Fantastic Furniture.
In an update on February 12, the company told the ASX it could not confirm it was compliant with the ASX’s listing rule 3.1, which refers to companies’ responsibilities to immediately update the market once they become aware of information that could have “a material effect on the price or value”. The company also confirmed PricewaterhouseCoopers was undertaking a compliance review of the company.
The company’s shares hit an all-time high of $4.60 in December 2017, but after resuming trading today, the price plunged nearly 60% to a low of $1.30, from $2.92 prior to the trading halt. At the time of publication, they are priced at $1.38.
The company also told the ASX that while PwC is still completing its audit, Getswift is now compliant with section 3.1 of the ASX’s listing rules, saying it was “comfortable no further disclosure is required”.
GetSwift completed a $24 million raise at the end of last year, with chairman Bane Hunter telling StartupSmart at the time company founders seeking investment should “be conservative and over deliver” speaking to investors as “everything you say is going to be recorded and measured”.
“Data talks, bullshit walks,” he said.