Unprofitable management app developer GeoOp has signalled it wants to delist from the New Zealand stock exchange's alternative market and relaunch itself on the ASX, to improve share liquidity and access more capital.
When it first listed in November 2013, its $1 shares soared to $2.40, valuing the company at more than $55 million, but yesterday were trading on the NZAX at 18c, valuing the company at $12.7 million.
The Auckland company said it was in the process of ''taking soundings'' from Australian institutional investors to determine their interest in an initial public offering on the ASX.
GeoOp said its management team was located in Australia, 60% of group revenues were generated there and its major shareholders were Australian.
In its presentation note for Australian investors, GeoOP said it wanted to migrate and delist from NZAX to move to the ASX to improve liquidity and access to capital.
Annual revenue stands at $4.5 million with 27,000 clients in 30 countries. Clients include the Auckland Council, Downer and Trustpower.
GeoOp predicted that with between $2.5 million and $3.5 million and revenue growth of 30% to 40%, it could be in a breakeven situation within 18 to 24 months.
At December, GeoOP had cash of $1.69 million, up from $1.07 million as at June.
Chief executive Anna Cicognani said in a statement yesterday she understood the shareholdings of
the company's former chief executive and director, Leanne Graham, and one of the company's co-founders, Simon Fraser, had been acquired by institutional investors during recent weeks.
''As a result, GeoOp now has five institutional investors on its register,'' she said.
As part of a capital-raising last year, GeoOp secured commitments for $3.95 million through a combination of a $2.55 million rights issue and a $1.4 million placement with deferred settlement terms.
Ms Cicognani also noted GeoOP had modified the terms of its placement agreement with Kestrel Capital for a remaining $A1.2 million ($NZ1.3 million), which was due to be paid on March 31 but would now be settled in monthly instalments, completed no later than June 30.
GeoOp's products include GeoServices, for mobile workforce and job management, and GeoSales, a mobile sales workforce management app, and it is soon to launch its GeoCare mobile human services management tool.
- Additional reporting by BusinessDesk
