Marketing and technology consulting group Trimantium GrowthOps has gone into a trading halt with plans to delist from the ASX.
The company formed in late 2017 as part of an eight-way merger, acquiring creative agency AJF Partnerships, 3wks, Digital Moshi, Institute of Executive Coaching and Leadership, jtribe, KDIS, Khemistry and Voodoo Creative.
Its shares last traded at $0.053, giving the company a market capitalisation of $7.75 million. The company listed in March 2018 with a $95 million market cap after raising $70 million in an initial public offering (IPO).
"GrowthOps seeks the trading halt while the ASX reviews its application to have its securities delisted," the company told the ASX this morning.
The company has been reviewing the business to look at options to improve underlying performance, financial stability, and working capital.
One of the primary drivers to list on the ASX was to provide the group of companies that came together to form GrowthOps with access to capital markets to drive and fund future business growth.
However, the company belives it hasn’t benefited from this advantage, while at the same time experiencing the burden and challenges of being a publicly listed company.
And the company believes the share price is not reflective of the underlying value.
“We believe that becoming an unlisted public entity is the best way to improve the company’s underlying performance, financial stability, and working capital to continue to build a pathway to growth," says CEO Clint Cooper .
"It will free us from various burdens and constraints, while also providing us with access to alternative funding sources.
“If our request to delist is approved by the ASX, we’ll then be seeking approval from our shareholders. I would like to thank our shareholders for the faith they continue to show in our business and their support.
“While we’re excited by the prospect of delisting, it’s business as usual in many ways. As always, we’re grateful to our staff for their continued commitment and our clients for their ongoing trust.
“GrowthOps is unequivocally a stronger business today and we’re confident that delisting will help to continue this positive trajectory.”
In August, GrowthOps posted a statutory net loss after tax of $43.7 million for the year to June. Revenue was $84.4 million, down from $97 million the year before.
Non-executive chairman Scott Tanner then said he was anticipating reduced levels of revenue in the first quarter of the 2021 financial year from the impact of COVID-19.
“We are giving greater prominence to some of the original brands that came together to form GrowthOps, such as AJF, Khemistry and IECL in the way that we go to market," he said.
"We have also combined our technology and digital practices to strengthen our offering for our clients, better reflecting their needs. Initiatives such as these are key to our FY2021 growthops.com.au plans, along with streamlining the company’s central overhead, as well as undertaking a review of the capital structure of the business.
“The board believes the company has emerged from FY2020 as a stronger, more agile business that more closely aligns with our clients’ needs, and is better able to deliver on our mission to reinvent how our clients grow."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.