Corporate: WiseTech founder Richard White buys 19.6 pc of Kyckr; shares fly
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If you’re a small cap tech company aspiring to grow to the size of the so-called WAAAX stocks there’s nothing like one of the founders of the top five tech stocks buying a 19.6 per cent stake — it’s definitely a (share) moving experience.
For those who don’t know, WAAAX is Oz’s equivalent of America’s FAANG stocks – the top 5 tech stocks. On the ASX they are WiseTech Global (ASX:WTC), Appen Limited (ASX:APX), Altium Limited (ASX:ALU) Afterpay Touch Group (ASX:APT) and Xero Ltd (ASX:XRO).
Regtech small cap Kyckr (ASX:KYK), which helps businesses with anti-money laundering compliance, welcomed WiseTech founder Richard White as a substantial holder this morning.
He bought 19.6 per cent of the company and shares took off this morning, gaining over 57 per cent to hit 16.5c.
“I can see in Kyckr, a product, business and opportunity set that can be leveraged and accelerated to major advantage,” he said.
“I am grateful to be able to help the company accelerate its growth ambitions both in the placement and, time permitting, occasional advice to the team.”
White founded WiseTech, which provides software for logistics companies, back in 1994. According to Bloomberg, his stake in WiseTech is worth $40.7m.
White is not the only WiseTech executive to diversify investments in recent weeks. Last month one of his colleagues, Michael Gregg, who invested in 2006, bought 6.82 per cent of Olivers’ Real Foods (ASX:OLI).
Crippled dental stock Smiles Inclusive (ASX:SIL) has told the ASX it is not about to run out of cash. The bourse sent the company a query letter asking if its financial condition was sufficient to warrant listing. Chairman David Usasz admitted the company only had $323,344 left in the bank (along with $1.91m Bartercard Trade dollars) last Friday but expected to be able to meet its liabilities for September. Smiles Inclusive asserted its turnaround was going well and that it had the support of its lenders, but cash flows would fluctuate.
CEO of buy now, pay later stock Splitit (ASX:SPT), Gil Don, has stood down as CEO and will now be general manager of Europe and the Middle East. North American managing director Brad Paterson will replace him.