ASX keeps Tikforce in detention until it answers questions properly
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Troubled HR software maker Tikforce has failed to respond satisfactorily to the ASX’s query about an alleged default — so it’s staying in suspension.
The company is accused of defaulting on a convertible note by a shareholder who alleges the company lost an unnamed major contract and did not tell the market, thereby breaching the terms of the note.
Stockhead understands the contract was a trial with the Federal government’s JobActive program, which Tikforce said at one point could earn $1.9 million in revenue.
The company also allegedly lost several other contracts without telling the market.
And it revealed the ending of an early contract with Australia Post — used in IPO marketing in 2015 and 2016 — on page 62 of its 2017 annual report: labelled under “contingent liabilities”. Tikforce said there had been a dispute about fees which had been settled.
On Wednesday Tikforce said it was suspended from the bourse “pending a response to an ASX query letter and an alleged default under a convertible note”.
Earlier it said it was suspended in order to sort out $1.2 million in funds to be raised by a corporate advisor in Perth.
“The company’s securities will continue to remain suspended in accordance with Listing Rule 17.3 for failure to respond to an ASX query. The suspension will continue until the company provides a satisfactory response to ASX’s query.”
“The suspension was extended on Friday, 23 March 2018 and Tuesday, 3 April 2018 pending an announcement confirming receipt of $1.2 million in funds,” Tikforce told investors.
Last night Tikforce received the $1.2 million convertible note funding from Regency Corporate, a week after it was due to be announced. It said an extra $800,000 had been made available “to draw down as and when required”.
It is also still waiting on $400,000 in funding to come through from Kyrgyzstan-based advisor East Star Capital (UK).
Stockhead has unsuccessfully sought comment from Tikforce on multiple occasions.