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TECHNOLOGY
GetSwift seeks white knight
Joel MacDonald, Managing Director & Bane Hunter, Executive Chairman of GetSwift Photo: Tom Pietrasik New York, NY USA September 26th 2016
Embattled logistics software start-up GetSwift is in the process of appointing an US-based investment bank to handle potential proposals, as the company looks for a buyer.
The company, which has already appointed multinational law firm Eversheds Sutherland as its legal adviser, said on Friday that there was no firm timetable in place for a transaction, even as it continues to answer questions from the ASX over its disclosure practices.
“The Company has not received any formal proposals, and does not intend to make any further announcements related to any evaluation unless it has approved a specific transaction or otherwise determined that further disclosure is appropriate,” it told the ASX.
GetSwift’s shares remain suspended and the company, on Friday, shed further light on the allegations that it had made premature revenue forecasts related to a deal with CBA in 2017, and announced deals with The Fruit Box Group and Fantastic Furniture that did not progress past trial stages.
With regards to The Fruit Box deal, announced in February last year, GetSwift has said that it had signed an exclusive 3 year contract to optimise and manage their fruit, milk and goods delivery operations nationally.
It also said at the time that the “exclusive contract” was projected at “more than 7,000,000+ total aggregate deliveries.”
The company maintains that it’s disclosures had been adequate given the nature of its software-as-a-service business.
“Providing an estimate of the number of deliveries of a customer has been a consistent disclosure parameter used to communicate with shareholders and the market. GetSwift has always believed that this disclosure parameter was readily understood by the intended audience,’ it said on Friday.
“The estimate of 7,000,000 transactions was over a period of 3 years, and was based upon feedback that was received while interacting with the client and taking reasonable growth projections into account.”
It also clarified that the Fantastic Furniture agreement had originally signed by a person who wasn’t authorised to sign commercial agreements on behalf of Fantastic Furniture.
“When notified of this unauthorised execution, GetSwift promptly allowed the deferral of the agreement with Fantastic Furniture at the client’s request and allowed future engagement to occur at client’s convenience,” GetSwift told the ASX.
Fantastic Furniture last used the GetSwift platform in September 2017, a fact that was not disclosed by GetSwift at the time.
The start-up, founded by former Brisbane and Melbourne AFL player Joel Macdonald in 2014, appointed PricewaterhouseCoopers (PwC) in January to help it respond to the ASX’s queries.
GetSwift said on Friday that it was still working with PwC in relation to its compliance obligations and will make further statements on February 19.
“PwC will be assisting GetSwift in the execution of new corporate governance processes, providing ongoing briefing and support to the board, and providing training where relevant to employees, in relation to the Company’s obligations to satisfy listing rule requirements,” the company said.
