ASX Tech Stocks: TYMLEZ to delist, Appen gets new CFO and shifts to AI model
The carbon counting stock has announced it is looking for the exit door and is planning to delist from the ASX. The company said it received formal approval for the delisting on April 28 with the exit tabled for shareholder approval at a general meeting to be held on May 31.
TYM said the board considers the delisting to be in the best interests of the company for a number of reasons, including underperformance of the trading price of the company’s shares, low levels of trading liquidity and a number of flow-on consequences.
“These factors, as well as the costs and administrative burden of remaining listed on ASX, outweigh the benefits associated with remaining listed,” the company said in an announcement.
“The board considers that the trading price of the company’s shares in recent years implies a valuation that has been (and remains) consistently and materially
lower than the valuations of unlisted companies of a comparable nature and stage to TYMLEZ.
“The board is confident that the company’s valuation has a greater prospect of growing towards the board’s assessment of fair value as an unlisted company.”
TYM said its share price (and market capitalisation implied by that price) has also been a discussion point raised as a significant engagement hurdle by potential customers and strategic investors.
The company also said when its seeks to raise further growth capital in the future whilst listed on ASX, this would likely impose a higher dilutionary cost on non-participating shareholders than if the company was more fairly valued.
The board also considers that the company will have access to a much broader universe of technology-focused, global institutional investors as an unlisted company including those who are unable to invest in ASX-listed companies due to investment mandates.
In a further announcement, TYM said it will move to consolidate issued capital through the conversion of every 200 existing ordinary shares into one share.
If the consolidation is approved at the AGM on May 31, then the number of shares on issue will be reduced from the current 1,092,195,295 to ~5,460,976.
TYM listed on the ASX in December 2018. It has seen its share price fall more than 73% in the past year.
The pure AI play has announced it has appointed Helen Johnson as chief financial officer (CFO) effective from today as the company shifts towards an AI platform business model.
APX said Johnson brings a wealth of experience of more than 25 years across a variety of industries including privately held IT managed service providers, medium sized public healthcare and financial services companies and Fortune 500 ranked publicly traded corporations in the IT industry.
In her most recent role as CFO of North America for Insight Enterprises Johnson was responsible for more than $7 billion of Insight’s $9 billion in revenues for nearly nine years.
“Helen will be instrumental in helping us accelerate our shift towards an AI platform business model,” Appen CEO Armughan Ahmad said.
“Helen’s experience operating in complex global environments and proven track record of profitable business growth, prudent financial controls and building winning teams will be a tremendous asset to Appen.”
APX said current CFO Kevin Levine will remain with the business until September 1 to ensure a smooth transition.
Industry software company VIS has announced it has inked a deal to transition existing client and leading UK independent cinema group, Everyman Media Group PLC, to Vista Cloud.
Everyman is listed on the London Stock Exchange and operates 40 cinemas, with over 130 screens, and is looking to open a further three cinemas during 2023.
VIS said Everyman is positioned at the premium end of the UK cinema market, with high quality, unique venues in central high street locations.
“Everyman is one of the most innovative cinema circuits in the UK. We are delighted to be able to work with the team at Everyman to deliver the most exciting cinema experience for its moviegoers and optimise cinema performance by leveraging Vista Group’s global leading software and data solutions,” VIS CEO Stuart Dickinson, said.
“Our agreement will see Everyman transition its circuit from our on premise software to our platform over the course of 2023.”
Everyman’s head of IT Colin Kendrick said the company’s focus is on delivering moviegoers the highest-quality experience and as a leader in cinema, innovation has and always will be essential.
“We’re excited to take advantage of the innovation that Vista Group’s SaaS platform will deliver, and we look forward to the solutions supporting our mission to create an exceptional cinema experience for our customers.”