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7.9¢ kyckr limited

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bahar

13,143 Posts.

670

11/10/19

10:54

Post #: 40831904
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Originally posted by team12 ↑

Alan Kohler has interviewed CEO Henderson this week.

disallowed link/investment-news/know-your-customer-kyckr/146210

Can't post the whole conversation of course but here's some interesting parts in quite a long, interesting bit of insight. Worth a subscription, Eureka Report, now that it's all shaken out with Alan Kohler again.... :

Ian, the shares took off the other day when you announced that you’d got Richard White as a cornerstone investor with 19.6 per cent so is he going to become a director?
No decisions taken in that regard as yet. I’m actually hoping to see Richard for a moment in Australia the week after next, so it may be a point of discussion at that stage. There are no decisions taken in terms of board representation at this current time.
Obviously a bit of a coup to get him, was that difficult? Did he play hard to get or had you been talking to him for awhile?
The reality was we were looking to raise capital for the next phase of the development of Kyckr and initially, the process had kicked off in the UK because we’ve got a very strong Australian shareholder base. Given that I and a chunk of the business is based in Europe we thought we’d try to broaden the investor base and it was actually through a UK introducer that we got in touch with Richard, then we obviously went through the various elements of dialogue. The great thing for us was that Richard got what we did relatively quickly given the base business he has in Australia and he plays I guess in the regulatory space to a degree through WiseTech Global.
Given what Kyckr does it was kind of an obvious similarity between the various businesses. After that things moved very quickly.
Has there been any discussion about in some way linking with WiseTech?
I think Richard’s invested primarily in a personal capacity at present. Obviously that brings all of the experience with the new global logistics, trade finance, etcetera, areas in which Kyckr does not play a significant role to date but we feel our technology and proposition definitely have a role to play.
The capital raising was 5.2 million at 6.6 cents per share which probably looked okay when you thought of it but there’s been some trades at 35 and 37 cents, so it’s looking a bit of a discount now. Do you feel like you’ve under-priced that?
Well it was priced at the prevailing market at the time, when I joined Kyckr in January of this year I think prevailing share price was 10 to 11 cents, it actually tracked downwards for a while and then around about the time were discussing all the new shareholders and existing shareholders we priced at a marginal discount to then prevailing share price so that was where the 6.6 cents was arrived at. Obviously, there was a bit of a bounce on the back of the news that the placement had been successful. The share price has been up, I think, in order of 50 cents in the company’s history but all before my time in the business.

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(Also, this part, just taken out re new customers, don't think I can post much more without breaching copyright)
"...In many ways we’re a couple of years old, we’re still very much I guess a new start business investing in the tech that enables us to access more markets, the focus hitherto has been on the banking sector but we recently announced our first major foray into the insurance world with a deal with AXA in Singapore and now talking to other insurers. We touched on Richard White in the global logistics world so there is opportunities in trade finance and logistics, the legal profession again globally but specifically in the UK is under a bit of pressure to upgrade their nonpersonal KYC requirements.
One of our biggest sources of new clients has been the legal and accounting professions on the back of increasing regulation in that space. There’s so much to go for and then make sure that our tech is fit for purpose. That’s why we’ve been working for some time to burn costs ahead of revenue but there’s definitely the early signs of the trajectory but we’re on a journey towards initially breakeven and then hopefully decent profitability going forward."

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This is going places, only a matter of time.

KYK Price at posting: 23.0¢ Sentiment: Buy Disclosure: Held
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