From The Aus - not ISX specific but concerning given the...

From The Aus - not ISX specific but concerning given the treasurers stance.

GetSwift’s plans to delist from the ASX and redomicile in Canada have hit a major hurdle, with the company receiving a letter from Treasurer Josh Frydenberg saying that doing so would be “contrary to the national interest” due to the company’s ongoing legal matters.

Mr Frydenberg said he was mulling an order prohibiting GetSwift from redomiciling under section 67 of the Foreign Acquisitions and Takeover Act.“Without prejudging the outcome of Australian legal proceedings currently on foot, it is my preliminary view that the proposed acquisition would be contrary to the national interest at this time due to there being ongoing legal matters concerning the Target which are yet to be resolved,” the Treasurer wrote. “If the proposed acquisition and subsequent re-deomicile of the Target were to take place before the current proceedings are resolved, this may have a negative impact on the interests of possible contingent creditors associated with those proceedings.”

GetSwift told the market on Tuesday it intended to respond to the Treasurer, and that its directors “continue to believe that the proposed scheme is in the best interest of GetSwift”.Its shares were down 6.25 per cent to 30c at 11.10am. Its shares were trading at 85 cents in July.

The logistics tech company, which is facing an ongoing class action suit in Australia, in September entered into an implementation deed with GetSwift Technologies Limited, otherwise known as Holdco, located in British Columbia, Canada.

The company intends to list on Canada’s NEO exchange, with Holdco to acquire GetSwift and its subsidiaries.GetSwift’s’s class action, which stems from alleged breaches of continuous disclosure obligations, is ongoing. Last year it had multiple class actions filed against it and endured a plummeting market capitalisation, as well as an ASIC investigation due to the alleged breaches of continuous disclosure obligations.