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Summary
- REFFIND has been actively engaged in identifying commercial opportunities for its flagship offering WooBoard, an intelligent employee recognition platform.
- During the June quarter, average number of new trial accounts per month on the platform went up by 179% on the previous quarter.
- A custom trial programme of WooBoard is being used by the Tax Division of the Sydney office of BDO, and RFN looks forward to taking a further proposal to the National Head of Tax.
- RFN’s licencing agreement with InterBio was discontinued due to inability of the parties to come to a contractual agreement.
- RFN is working closely with a consortium of sophisticated investors to take over a controlling stake in the ownership of Loyyal assets.
IT sector player offering the WooBoard employee experience technology platform, REFFIND Limited (ASX:RFN) has released its operational update for the three-month period ended 30 June 2020. During the quarter, despite the challenging macroeconomic environment, RFN was presented with significant commercial opportunities.
The Company considers its flagship offering WooBoard to be uniquely positioned to capture commercial opportunities arising from the shift towards mobile and remote working environments, with the platform targeting both domestic and international medium to large enterprises.
More at: REFFIND’s WooBoard to Gain from Deployment as Essential Service in Fast-Growing Industries
Since the onset of the pandemic, digital adoption has taken place at a faster pace. This has presented a significant upside for RFN, and the Company is positioning itself to take advantage of increased relevance and demand for its flagship, as well as maximise the opportunity for shareholders.
Increased Traction for WooBoard
During the quarter, WooBoard continued to gain traction, owing to targeted measures implemented by the Company. RFN had completed a strategic review related to the impact of COVID-19 on the utilisation of WooBoard and its growing application to small, medium and large businesses.
The opportunities identified by RFN were seen taking shape during the quarter, and RFN witnessed a productive quarter for WooBoard with the average number of new trial accounts per month on the platform up 179% on the previous quarter.
Related: REFFIND Leveraging WooBoard Platform to Seize Opportunities Amid COVID-19
BDO (Sydney Tax Division) Using WooBoard
Of late, large accounting firm BDO (Sydney office) has commenced using WooBoard in its Tax Division, as part of REFFIND’s WooBoard initiative to offer 90-day trial periods to large corporations.
This is a great upside for RFN since BDO is one of the largest accounting firms in the world with over 80,000 staff.
RFN believes that the benefits of WooBoard start to be felt by clients after 30 days to 60 days with the onboarding of more staff and increased user engagement. Moreover, large clients like BDO probably require more time to review the benefits of WooBoard once there is increased user engagement and further obtain executive sign-up to proceed ahead.
RFN plans to take a further proposal to the National Head of Tax to consider implementing WooBoard across the broader BDO organisation in multiple jurisdictions after the trial period proves a success in the Sydney Tax Division.
Licencing Agreement with InterBio Discontinued
During the quarter, RFN inked a Licencing Agreement with identity management and biometric software solutions company, International Biometrics Pte Ltd (InterBIO). Unable to come to a contractual agreement, RFN and InterBIO resolved to discontinue the proposed licencing agreement, subsequent to the quarter-end.
Consequently, RFN made the strategic decision to enhance its focus on identifying commercial opportunities that would empower the Company to speed up commercial rollout of an improved WooBoard solution to get most out of the prevailing work-from-home environment.
RFN also incurred costs associated with the InterBio transaction like product, transaction and legal costs during the quarter but is now sure that no additional costs are due to be incurred in relation with the InterBio Licencing Agreement.
Related: REFFIND to Increase Focus on Commercial Opportunities for WooBoard
RFN Eyes Loyyal’s Assets
RFN’s investment in Loyyal started with a total of USD$2.3 million into Loyyal Corporation in January 2018, including convertible promissory notes and Series A-3 Preferred Stock. During the quarter, RFN sought repayment of its Note rather than converting to further equity in Loyyal.
Loyyal’s clients in the airline sector, such as major client Emirates and hotel chains have been adversely impacted during the COVID-19 times, placing Loyyal in a difficult financial position. Consequently, Loyyal filed for bankruptcy protection.
Presently, RFN is engaged with a consortium of sophisticated investors to take a controlling stake in the ownership of Loyyal’s assets. Moreover, RFN, through its corporate advisors, has indicated that its significant role in the consortium is likely to result in strong, sophisticated investor support for conducting capital raising in due course.
Details at: REFFIND Envisions Substantial Value Addition for Investors through Strategy to Bid for Loyyal Assets
Plans for Capital Raising
RFN looks forward to future capital raising based on the approach where funds raised were used to acquire a significant stake in the Loyyal assets as part of a consortium. In case such capital raising is carried out, the Board’s intention is that such capital raising should be undertaken at a higher price than the last raise that occurred on 28 July 2020.
Hence, RFN has reinforced intention to maximise its role in the consortium and believes that it would be in the best interest of its shareholders to seize this opportunity to take ownership of Loyyal’s assets.
During the upcoming bankruptcy process in the US, Loyyal can possibly be acquired at a large discount to the USD$29 million valuation cap of the SAFE instrument. Consequently, as a pressing matter in the forthcoming weeks, REFFIND looks forward to seeking consultation with ASX on the issue of the significant role RFN is seeking to play in the consortium for the asset acquisition.
Interesting Read: REFFIND Receives Commitments for ~$880,000, Proceeds to Aid Product Development and Accelerate Sales Growth
In coming times, RFN strives to grow its overall subscriber base for WooBoard and increase paid user conversions. Moreover, RFN looks forward to increasing WooBoard trial periods from 14 days to 90 days, based on feedback from trial participants, especially larger corporations, that more time is needed for corporations to gain the authorisation from Senior Management amid COVID-19 to commit to a paid subscription for their entire workforce.
