Scoop has an Ethical Paywall
License needed for work use Register

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


GeoOp quits planned ASX IPO, gets more shareholder funding

GeoOp quits planned ASX IPO, gets more shareholder funding

By Paul McBeth

Oct. 17 (BusinessDesk) - GeoOp has quit plans for an initial public offering and Australian listing after reaching an impasse with the Australian Securities Exchange, and will instead stay on the NZAX and rely on cornerstone shareholder North Ridge Partners for funding.

Earlier this year shareholders of the unprofitable management app developer backed plans to raise at least A$2 million in an IPO and list on the ASX, but the company was told earlier this month it needed more capital to meet the Australian stock market operator's requirements. Rather than change tack, GeoOp instead secured up to NZ$1.5 million from North Ridge through a two-year convertible note and will resume trading on the NZ Alternative Market.

"We have spent considerable time and effort to work through these matters, but ultimately have been unable to reach an outcome that addressed ASX requirements without materially changing the offer or restricting GEO's operational plans," chair Roger Sharp said in a statement. "We are disappointed but resolute and will continue to build this business."

GeoOp went public in 2013, selling shares at $1 apiece in a private offer before its compliance listing on the NZAX. The stock last traded on the NZAX at 22 cents before undertaking a two-for-one share consolidation in July which sees it listed at 44 cents. At the time, GeoOp said that was needed to meet the ASX's minimum share price of 20 Australian cents.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The move to an ASX listing would have followed its business across the Tasman where it generates 60 percent of sales and its management team already operate.

The company today said it's "progressively" cutting costs and anticipates cash burn to "reduce materially in the coming months" once the development of a new enterprise platform and product upgrades are completed. It will give a horizon to break even when it releases first-quarter results in November.

The convertible note is expected to fund GeoOp's operations for the rest of the 2018 financial year and subject to shareholder approval will convert to equity or be repaid when the company raises equity in calendar 2018.

"The company's intention is to offer all shareholders the opportunity to participate in its next equity issue in the expectation that the majority, if not all, of its convertible note facilities will be converted to equity," it said. A vote on the conversion will be held at the annual meeting later this year.



© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.