Western Australia-based K2fly Limited (ASX: K2F) is a technology company and consulting systems integrator which provides innovative Software-as-a-Service (SaaS) based solutions, customised for the specific requirements of clients worldwide. It primarily targets and serves clients from the asset-intensive industries such as Gas, Mining, Rail, Water, Electricity, Mining, Oil & Gas, and Facilities Management.
Source: Investor Presentation
K2fly is riding high in the Australian IT space on the back of its key revenue generation streams: Owned Software, 3rd Party Software and Consulting services.
On 5 June 2019, K2fly revealed two key announcements, notifying the stakeholders of the changes (increase) in the interest of two Directors, currently on Board of the company. The purchase of shares by company’s senior leaders garnered investors’ confidence. On 5 June 2019, K2F skyrocketed by 25% on the ASX to AU$ 0.150 with ~ 294,529 shares traded, more than twice the annual average volume of 122,476. Today, K2F is trading at AU$0.160, up by 6.67% (As at 12:13 PM AEST, 6 June 2019).
Brian Miller, the Chief Executive Officer and Director, has undertaken an on-market purchase of 148,000 fully paid ordinary shares (FPOs), at a total consideration of $19,540. After the transaction, Mr Brians’ total equity share in K2fly now stands at:
- Direct: 2,200,404 FPOs; 276,448 listed options at AU$ 0.20 expiring on 18 May 2020.
- Indirect: 639,019 unlisted options exercisable at AU$ 0.243 each on or before 26 November 2022; 341,933 unlisted options exercisable on or before 26 November 2020 (both subject to vesting conditions).
Brian Miller is a 30-year veteran of the Information Technology sector. He is also a founding member of the UK’s Institute of Asset Management; joined K2fly after having held Board directorships with several UK-based and Australian IT companies in the asset intensive sectors.
Neil Canby, one of K2fly’s Non-Executive Directors, has also acquired additional Direct interest in the company through an on-market purchase of 55,000 FPOs at a total consideration of $ 7,425. Mr Canby’s direct equity interest in K2fly now stands at:
- 462,500 FPOs; 38,125 listed options at $ 0.20 expiring 18 May 2020;
89,219 unlisted options exercisable on or before 26 November 2020 (subject to vesting conditions).
Neil Canby has held senior positions in diverse industries including energy and utilities; responsible for wide ranging roles such as; business development, project and operational delivery, as well as commercial and financial management. With extensive industry experience, he is also a current Executive Director of Sunrise Energy Group.
Other Directors on the Board include Ms Jenny Cutri as the Non-Executive Chairman and Mr James Deacon as the Non-Executive Director.
Over last few days, K2fly reported two significant developments concerning its SaaS business suite, targeting the Resources sector. On 3 June 2019, the company announced to have closed the acquisition of Resource Governance Software Solution, RCubed through a binding agreement signed with South Africa-based Prodmark Pty Ltd and its related entities.
Also, previously in May 2019, K2fly executed a Reseller Agreement whereby Esri Australia Pty Ltd would distribute its Infoscope application offering which supports organisations to maintain license to operate on land.
Source: Investor Presentation
K2fly seems to be well positioned and is consistently working to become a “digital enabling partner” for Tier 1 asset-intensive clients with dynamic leadership, people, products and strategic alliances in place.
With a focus on building a high margin business, the company is driving organic growth initiatives while also aligning with large software providers to expand its footprint into eastern Australia and generate software sales around the world.
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