GetSwift Limited (ASX: GSW) (‘GetSwift’ or the ‘Company’), today
lodged its unaudited Appendix 4C Report for the period ending 31 March
Total revenue and other income for the quarter ending 31 March 2019 was
approximately $1.085 million, an increase of 197 per cent on the
equivalent quarter last year and an increase of 52 per cent from the
preceding quarter ending 31 December 2018. On 20 February 2019, the
Company announced two strategic SaaS acquisitions in North America:
Delivery BIZ Pro and Scheduling+. Net loss after tax was approximately
$6.7 million of which a significant amount had been allocated for
technology staff growth and R&D platform enhancements for the quarter
ending 31 March 2018.
Delivery BIZ Pro (“DBP”) is a subscription-based cloud service for
businesses with recurring product orders particularly within the
produce, meal-kit, farm-to-table, water, home and commercial delivery
sectors. DBP’s platform brings together key components that allow
recurring delivery industry sectors to employ the best methodology for
their logistics fulfillment.
Scheduling+ (“SP”) combines staff scheduling, task management, time and
attendance recordkeeping, and payroll into one easy to use
subscription-based cloud solution, which allows businesses of all sizes
to reduce the amount of time spent on employee management and optimise
human capital management.
Given the transformation of the Company through these two acquisitions
and enhanced product offerings, the Company believes that transactions
are no longer a suitable representation of business activity for
investors and customers. As such, the Company will not be providing
transaction numbers going forward, and will instead report on revenue.
Integration of DBP and SP has progressed as planned. The Company
continues to invest in technology and enterprise integrations, including
new product development. The Company’s new software development centre
in Denver, Colorado is progressing well with continued hires in the
March quarter. In the quarter the Company also opened a new tech
development campus in Europe to meet client growth needs.
On 17 April 2019, the High Court of Australia dismissed an application
for special leave to appeal the decision of the Full Court of the
Federal Court of Australia. As previously advised, the decision of the
Full Court of the Federal Court that only one of three competing class
actions filed against the Company could continue, was subject to an
application for special leave to appeal to the High Court of Australia.
The Company resisted the application and pressed for a determination
that only one class action proceed. As a result of the High Court’s
decision, the judgment of the Full Court is now final and only one class
action will continue against the Company: the Webb class action. The
Webb class action has been proceeding in the interim and the trial of
the matter is now scheduled to commence on a date not before 17 August
2020. In dismissing the application for leave, the High Court ordered
the costs against the party bringing the application, meaning the
Company will recover some of the costs associated with the application
Separately, the Company advised in February this year that the
Australian Securities and Investments Commission (ASIC) commenced civil
penalty proceedings against the Company and two of its directors. ASIC
have since added allegations against Mr Brett Eagle, a former director
and General Counsel of the Company. The trial of the ASIC proceedings is
now scheduled to commence in June 2020.
As previously advised, The Company strongly disputes the allegations
made in both the Webb class action and the ASIC proceeding, including
any alleged loss, and is vigorously defending the proceedings. The
Company will continue to keep shareholders informed of any relevant
Administration and Corporate Costs continued to be significant cash
expenditures due to legal costs and increased governance expenses. These
expenses include the aforementioned costs for defending proceedings
before the Federal Court of Australia and the ASIC proceeding.
Administrative and Corporates Costs will be higher in the June fiscal
quarter due to these recent corporate events. The Company has and will
continue to vigorously defend these proceedings, and will continue to
robustly pursue all legal options to protect shareholder interests.
The Company has a strong balance sheet, with the quarter ending 31 March
2019 holding substantial liquidity with cash, cash equivalents, and bank
term deposits of $74.4 million and no outstanding debt.
David Ryan, Belinda Gibson, and Michael Fricklas have decided to step
down from the Board effective 26 April 2019.
Michael Fricklas said on behalf of Belinda Gibson, David Ryan, and
himself, “As members of the Board of GetSwift, we are proud of how the
Company has matured over the past year. The Company’s products are
achieving success in the market and it has many accomplishments.” Mr.
Fricklas also said, “Nonetheless, we have different views as to the
manner in which the Company engages with its Board, and in light of
this, have decided to resign. We are all shareholders ourselves and we
hope the Company has great success in the future.”
The Company is very grateful for their service and contributions over
the last twelve months particularly in the area of improving the
Company’s corporate governance and reporting structures. The Company is
in a stronger position as result of their contributions and those
governance enhancements remain intact.
Consistent with the Company’s focus on growth and scaling the business
to meet global demand including the recent addition of Independent
Non-Executive Director, Marc Naidoo to the Board, the Company intends to
shortly appoint at least two new Independent Non-Executive Directors to
the Board. Importantly, once these new appointments take effect, the
Board will continue to have a majority of independent directors and
The Company feels that it is appropriate to shift toward Directors with
significant experience generating revenues and scaling commercial
operations for growth. The Company has already identified several strong
candidates that meet these requirements.
The Company’s goal remains to have best-in-class governance and seasoned
business leaders with commercial experience to help the Company rapidly
expand its growth and take advantage of global opportunities. The
Company and management are committed to continuing to act in the best
interest of shareholders to create long-term shareholder value.
The company will now focus on a new phase of its development with major
focuses on scaling both revenues and technology development efforts
whilst corporate governance continues to be enforced.
Investor Conference Call
The Company will host a shareholder call following the announcement of
the new Independent Non-Executive Directors.
About GetSwift Limited
Technology to Optimise Global Delivery Logistics
GetSwift is a worldwide leader in delivery management automation. From
enterprise to hyper-local, businesses across dozens of industries around
the globe depend on GetSwift’s SaaS platform to bring visibility,
accountability, efficiency and savings to their supply chain and “Last
Mile” operations. GetSwift is headquartered in New York City and is
listed on the Australian Securities Exchange (ASX:GSW). For further
background, please visit GetSwift.co.