On 1 April 2019, the shares of GetSwift Limited (ASX: GSW) were trading up by more than 5 percent, during the day’s trading session on ASX. The two shareholders, Clutterbuck Capital Management LLC (CMC) and KPT Capital LLC (KPT) opted out of GetSwift class action, and released a joint letter to Getswift shareholders, expressing their support to the company.
The New York-headquartered, delivery management automation company, GetSwift Limited had been served notice of a class action from its shareholders in February 2018. It was alleged that the company had engaged in deceptive and misleading conduct. GetSwift did not meet its obligations to the market in declaring deals with The Fruitbox company, the Commonwealth Bank, Fantastic Furniture and NA Williams. Those deals were subsequently cancelled or were subject to review.
The share price dipped from a high of A$4.3 posted in December 2017, to currently trading at A$0.200 (as on 1 April 2019).
In the letter, the two investors highlighted that they had informed the court of their decision to pull out of the class action proceedings. They also expressed full support to the senior management team of GetSwift. They believe that both Messrs. Hunter and Macdonald should remain at the helm, for the future success of the firm. They consider the two-management personnel to have deep industry expertise.
The letter also highlights GetSwift’s strategy towards growth, with the company reporting q-on-q growth in 2018 and GSW’s two tactical North American purchases in February 2019. In the letter, the 2 companies also stated that the GSW had taken concrete action to elevate potential concerns.
Few of the steps mentioned in the letter, are the appointment of Mr Michael Fricklas as an independent Chairman, who had previously held top positions in Viacom Inc from 1993 to 2017. The company appointed Belinda Gibson (former deputy chair of the ASIC), as Non-Executive Director. Besides, the company appointed PricewaterhouseCoopers to review its disclosure compliance and corporate governance compliance. CMC and KPT consider these steps, to nullify concerns about the company’s corporate governance practices and help GSW to move forward.
CMC and KPT in the letter expressed their views, about the class action proceedings, and they believe that the class action proceedings resulted in unsatisfactory treatment to shareholders. They assert that the company should proceed further leaving all the legal troubles behind. They are of the view, that it would allow the management personnel to focus on delivering to the benefit of all shareholders.
Stock Price Information:
The stock has delivered a negative YTD return of 47.95 percent. The stock has delivered a return of -70.31 percent, -54.76 percent and -25.49 percent in the past six months, three months and one month respectively.
The shares of GSW last traded at A$0.200 on ASX (As on 01 April 2019) and were up by 5.263 percent as compared to its previous day price.
GSW’s market capitalization stands at A$35.82 million. The ASX reported average trading volume of 462,275. The company’s EPS stood at -0.069 AUD.