Its still impressive what Jamie and the team has achieved thus far. The quarterly gave many on the sidelines ammunition to criticize what has been achieved in a short timeframe and it created a panic sell down.
From my opinion the company only had to reference a few little bits of information which would of limited panic selling. They simply had to remind the market that many customers were being converted to paying customers and that revenues will improve as uptake of the Reffind products continue. Many holders just saw the numbers and ran for the exit. A few simple lines needed to be added to keep the market at ease. At the end of the day its their loss for those who sold as I feel they are leaving an amazing story which is only just unfolding. I feel it will bounce just as fast anyway. The fall has just created an opportunity for those who missed the boat earlier. Its a good story and I expect her to turn back up. Anyway more info below which is from the prospectus.
" The Company’s future revenue prospects are heavily reliant on the
conversion of its clients trialing the App into paying clients, and the
delivery of additional product offerings to those paying clients. Accordingly,
the Company must maintain and support its existing customer
relationships (whether trialing customers or paying customers) to ensure
they continue using the App into the future (given customers are on
monthly subscription plans with no fixed term) and are receptive to the
uptake of additional product offerings. The loss of these customers would
have an adverse impact on the financial position of the Company as if
customers were to be lost, the Company would lose a revenue stream
(being existing subscription based payments) and the opportunity to sell
further product offerings."
"REFFIND has achieved early sales success with the REFFIND Employ product being subscribed for several large companies including:
• Coles Limited;
• Fuji Xerox Australia Pty Limited;
• Coca-cola Amatil Limited;
• Lion Pty Limited (formerly, Lion Nathan);
• Pacific Brands Limited; and
• AMP Limited.
In addition there are a number of companies currently trialling or in the near term sales pipeline (less than 90 days) for the REFFIND Employ product which if successful, will likely convert to paying customers. These include, but are not limited to:
• Qantas Limited;
• Australia Post;
• Allianz Australia Limited;
• Santos Limited;
• Nestle Australia Ltd;
• Genworth Mortgage Insurance Australia Limited;
• Thales Australia;
• AON Australia;
• NBN Co Limited;
• SMS Management & Technology Limited;
• Downer EDI Limited; and
• Salmat Limited.
There is no guarantee that any of the above companies will become paying customers of REFFIND. In terms of the ideal target customer, REFFIND is targeting organisations with more than 500 employees. Currently sales and marketing has primarily been focussed on the domestic Australian market however the Company plans to expand its international sales force following the completion of the capital raised under this Offer.
The current customer acquisition process involves business development managers directly contacting the HR department inside a target organisation and conducting face to face direct selling techniques. Upon becoming a customer, the client is handed over to a customer success team"
RFN Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
(20min delay)