The founders of two ASX-listed HR software makers have sold big chunks of shares
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The founders of two ASX-listed human resources software makers have sold down big chunks of shares, their companies announced today.
Both companies — Xref and CVCheck — make software that allows employers to snoop on job candidates.
Xref (ASX:XF1) announced that its two founders had sold shares that accounted for a total of 13.3 per cent of the company.
CEO Lee-Martin Seymour and Chief Technology Officer Tim Griffiths each sold 9.8 million shares at 60c each.
Each founder pocketed $5.9 million.
“The sale was driven by demand for Xref shares from institutional investors looking to secure a holding,” the company told shareholders.
“It also represents the first occasion that Messrs Seymour and Griffiths, both founders of Xref, have sold any shares in the company.”
After the sale, the pair were left with 30.9 million shares each – or about 42 per cent of the company in total.
Xref’s software allows employers to automate reference checks and even automatically cross-reference job candidates according to sex offences, criminal records, driving accidents and drug checks.
Xref lost $5.2 million in the December-half on higher revenue of $1.4 million.
The shares were steady at 60c at 1pm AEDT Thursday — compared to a 12-month high of 79.5c in October.
Wife of CVCheck founder sells down
On the same day, Beverley Carolan — the wife of CVCheck (ASX:CV1) founder Steven Carolan — pocketed about $2.6 million after selling 40 million shares at 6.5c each.
That leaves Ms Carolan with about 47 million shares.
CVCheck makes software that allows employers to check job candidates against police records, credit, financial and reference and other records.
CV Check lost $1.5 million in the December half, on higher revenue of $5.7 million.
CVCheck shares gained 6 per cent to 7.4c in Thursday lunchtime trade — compared to a high of 13c last May.
“Mrs Carolan has reiterated her intention to retain her remaining shareholding and has reaffirmed her confidence in the future growth prospects of CVCheck,” the company said.
About 5.2 million of the shares were bought by CVCheck CEO Rod Sherwood (for $334,750) and the rest were placed with sophisticated and high net worth investors.
“Steve Carolan and Rod Sherwood both retain great confidence in CVCheck (ASX:CV1), its vision and significant potential, and remain strongly committed to the business,” the company said.
“Mr Carolan founded CVCheck in 2004 and continues to have an active role as a non-executive director.”
The move was aimed at “improving liquidity and allowing register renewal”, the company said.
“The CVCheck board has been discussing options to improve the free float of the company, and facilitate the entry of new investors to support the company in its next stage of growth.”