GeoOp sounds out investor interest for ASX listing

GeoOp, the unprofitable management app developer, wants to delist from the New Zealand stock exchange's alternative market for fledgling companies and migrate to the Australian stock exchange to improve the liquidity of its shares and provide access to more capital.

The Auckland-based company is in the process of taking soundings from Australian institutional investors to determine their interest in participating in an initial public offering on the Australian Securities Exchange, it said in a statement.

GeoOp went public in 2013, selling shares at $1 apiece in an initial public offering. The stock last traded on the NZAX at 18 cents, valuing the company at $12.7 million. In presentation notes detailing its desire to migrate to the ASX, GeoOp said its management team is located in Australia, 60 percent of group revenues are generated there, and its major shareholders are Australian.

Its presentation notes included the bullet point: "Migrating and delisting from NZAX to ASX to improve liquidity and access to capital".

​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. The company has 27,000 clients in 30 countries, including the Auckland Council, Downer and TrustPower.

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.

The company said today it had pushed out the settlement date for Sydney-based investor Kestrel Capital to pay A$1.2 million as part of the placement agreement. The funds had been due by March 31, but would now be paid in monthly installments by June 30, it said.

At Dec. 31, 2016, the company had cash of $1.69 million, up from $1.07 million at June 30.

GeoOp said it now has five institutional investors after shares were sold by its former chief executive and director Leanne Graham, and co-founder Simon Fraser.

(BusinessDesk)