Corporate: IODM has gained over 700pc in a year, and has now revealed the identity of its perfect match

IODM (ASX:IOD), a stock that has risen from 1.4c 12 months ago to 11.5c today, has finally revealed who its major partner is.

IODM announced a referral partnership for the US back in December but did not name its new partner at the time.

Today, it not only revealed that Western Union was its major partner, but told shareholders that it also had a further referral agreement for the APAC and UK regions.

“Early evidence suggests that both company’s products complement one another well and Western Union has already been partly responsible for IODM re-positioning itself across the larger enterprise companies domestically,” IODM said.

The company added that its sales momentum from the last financial year had continued and improved in recent weeks.

This comes despite a change in practice where invoicing will in some cases be done in arrears rather in advance.

The stock gained nearly 20 per cent this morning and is up 721 per cent in the past year.

IODM reached its low in September last year after cash receipts came in at only $67,000 for the quarter.

But its annual report released earlier this month put sales at $489,176 (more than double the previous year) and total revenue at $816,827.

In other ASX small cap corporate news today:

The biggest buy now, pay later stock, Afterpay (ASX:APT), gave an update this morning into its AUSTRAC investigation. An interim auditor’s report has been given to AUSTRAC but has not provided any recommendations. While Afterpay said it welcomed the opportunity to ensure its anti-money laundering and counter-terrorism financing compliance was robust, it said neither terrorism or money laundering had been discovered in its systems to date. It noted it was used for small value non-cash transactions, averaging $150 and did not allow for international money transfers.

Retail Food Group (ASX:RFG) responded to media speculation and said it was in discussions about a capital raising but no decision had been made yet. It has been a tough time for the food franchisor which owns brands including Donut King, Michel’s and Gloria Jeans. It made a statutory net loss of $149.3m in FY19 and has been accused by a parliamentary inquiry committee of having “damaged the reputation of franchising” in Australia.

Smiles Inclusive (ASX:SIL) has announced a $3.33m rights issue at 5c per share. The plagued dental stock has fallen nearly 95 per cent since its IPO after its financials nosedived, board infighting occurred and speculation emerged earlier this month suggesting it was about to run out of cash. In a presentation this morning, the company admitted it had been “a disappointing start”, but was now acting on a clear plan to realise the original vision for the business in a sustainable way. Its turnaround plan includes a head office cost reduction as well as improvement in its overhead efficiency and IT systems.