A letter to management

I wish to document my frustration over recent ‘delays’ that have occurred with regards to the release of the Wangle application to the Apple Store and the Google Play Store. As a long-term investor in Wangle Technologies from the days of Vortex Holdings, I feel it is necessary to provide an opportunity for you to address my concerns before taking this further.

On May 3rd, in an announcement to the ASX entitled 'WANGLE READY FOR LAUNCH AFTER SATISFYING GOVERNMENT REQUIREMENTS’. Within this announcement, it was stated:

'All testing has been carried out across both Android and iOS ahead of the Apps launch on or before June 15th.’

Furthermore, the announcement stated:

'The commercial launch of the App in Australia and New Zealand is scheduled for on or before the 15th of June 2016, subject to App Store review (iOS  version only), where members of the public will be able to download and use Wangle’s revolutionary data optimisation service through Apple’s App Store   
and Google Play Store.’

Predictably, the market reacted positively to the announcement, with Wangle’s share price soaring from 3.1c on May 20th to 4.5c on May 30th. Again, this appreciation was expected, given the imminent release of the application. This was confirmed by an increase in the volume of shares traded over this timeframe. Consequently, on May 30th, the ASX issued a Price and Volume Query, with your response being delivered to the market. Within your response, you stated:

'The commercial launch of the Entity’s App is scheduled to take place on or before the 15th of June 2016 in Australia and New Zealand.'

It therefore seemed apparent to all shareholders that the application would be released by June 15th, at the latest. Furthermore, I would suggest that management had every intention of meeting this deadline, otherwise I struggle to see why this deadline would have been provided. Please correct me if this is an incorrect assumption to make?

Investors waited patiently for news, and eventually the promised deadline of June 15 came and went without news. On June 16, it was announced in a Market Update that:

'Wangle Technologies Limited (ASX: WGL) (‘Wangle’ or the ‘Company’) advises that compliance with the Data Interception and Data Retention obligations as a Carriage Service Provider (CSP) requires additional functionality than what was previously contemplated. As a result, the release of its consumer iOS  and Android App will be put on hold until these matters are addressed.’


My question to you is simple – at what point did you become aware of the information suggesting that the release would not continue as scheduled, as promised? I struggle to believe that you only became aware of the above mentioned information regarding the Data Interception and Data Retention obligations this morning, almost 6-weeks after it was first promised that the application would be released by June 15. Again, if this is an incorrect assumption, please let me know.

Since this latest announcement is clearly market-sensitive, as evidenced by the trading action today, I’m sure I do not need to remind you of your obligation to have disclosed this information promptly and without delay, as per Listing Rule 3.1. The share price increased on news of the imminent release, and therefore a reasonable person could expect this latest news to have had a material effect on the share price, and therefore influence individuals in deciding whether to acquire or dispose of Wangle securities.  

I understand that within the corporate environment, setbacks naturally occur. However, as an investor, I do not tolerate a lack of disclosure, if in fact this information was acquired prior to this morning (June 16).

I look forward to a response regarding these concerns.


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Thoughts?