REFFIND Leveraging WooBoard Platform to Seize Opportunities Amid COVID-19

RFN conducted a strategic review of the WooBoard operations, sales and marketing during the previous quarter ended 31 March 2020, with major portion completed; however, recommendations were released post the quarter end.

Though the novel coronavirus presented major challenges for domestic and international businesses, REFFIND is well placed to benefit from opportunities arising from the pandemic.

COVID-19 Resulting in Opportunities for RFN

During the quarter, the Company experienced expansion and extension of its review due to the COVID-19 pandemic, on the back of strong growth in remote working space, as organisations across the globe are compelled to cope with the situation and establish an ecosystem for work-from-home. The shift in work preferences has laid increased importance on the need for a software that assists in employee engagement as well as recognition.

For quite some time before the COVID-19 outbreak, RFN had been engaged in fulfilling the growing trend of employees working remotely due to general improvements in technologies and telecommunications through the development of its employee engagement platform, WooBoard.

However, with the outbreak, there has been a dramatic surge in the need for organisations to adopt employee engagement and recognition software that is highly responsive to the current operational needs of businesses and their working environments in Australia.

RFN is optimistic that the existing COVID-19 environment would be conducive to a lasting shift in traditional business models, thereby resulting in longer-lasting trends in the remote and work-from-home capabilities of enterprises in the current scenario.

Given this backdrop of opportunity, the Company is actively progressing towards implementation of the recommendations from the strategic review into WooBoard while also considering enhancements to the platform, owing to the changes put forward by the novel coronavirus outbreak.

Completion of Two Placements

RFN successfully completed two placements during the quarter:

• First to raise $500,000 through convertible loans and a placement to sophisticated investors, and
• Second to raise $530,000 through sophisticated investors.

Through completion of the above-two placements, RFN has indicated that it is well-positioned to progressively execute on its business plan and generate additional value for shareholders, especially through the WooBoard platform expansion.

Proceeds from the placements are planned to be directed towards:

• Supporting development activities in connection with the WooBoard platform
• Costs and investments in relation to RFN’s investment in Loyyal
• General working capital requirements

At the end of the three-month period to March 2020, cash and cash equivalents of RFN stood at $587,000.

Way Forward

Undertaking of strategic review of its WooBoard employee engagement platform has confirmed to be timely for the Company, as RFN is currently implementing recommendations of the strategic review while also taking into account product enhancements for the platform improvement.

RFN looks forward to increasing its cash position without further capital raising from investors looking at the current economic climate and opportunities presented by WooBoard, thereby made the decision to call in for repayment of its unsecured convertible promissory note entered into between Loyyal Corporation and REFFIND during the quarter. Further, RFN does not intend to convert the Note for additional shares and in its place requested repayment of all outstanding money, and currently, negotiations are underway with Loyyal regarding the repayment.

Moreover, RFN has also decided to pause the OTC Listing with a view to preserve cash during current uncertain economic times and to focus on the expansion of WooBoard, since OTC Listing process can be resumed easily without penalty at a time considered appropriate in future. Moreover, a lot shall also depend upon the stability in the stock market conditions in North America before seeking to resume the OTC Listing process.

RFN has considered this alternative with the intention to completely fund itself and expansion of WooBoard in the forthcoming time without the necessity of raising capital from investors.

While RFN has maintained its current shareholding in Loyyal, the Company might consider selling its shareholding to well secure cash position and dedicate resources towards expansion of WooBoard, contingent to the success of the WooBoard expansion in forthcoming quarters.

The strategy of maintaining ability to stockpile cash, diversify balance sheet and seize unique opportunities presently existing to WooBoard is prudent in the view of RFN’s Board during the current economic times.