PINCHme has decided it no longer likes the feel of the ASX
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US domiciled tech stock PINCHme (ASX:PIN) has told shareholders it is breaking up with the Australian bourse.
PINCHme’s bread and butter is matching businesses with individuals who write reviews for free stuff. It claims to intelligently match them with PINCHme members who have provided data about themselves and their spending habits.
Members (who have to live in the US) receive free samples which they are then asked to rate. The brands receive “detailed insights, product reviews, feedback and social media engagement to drive sales uplift”.
The company was founded in 2012 by former hedge fund manager Jeremy Reid.
The company’s shares sat at 4.3 cents on Monday and dropped further to 4 cents at market open this morning.
PINCHme credited several reasons including low trading volumes and thus disproportionate costs of listing.
It argued it might be able to attract new investments from the US if it went private, being consequently more attractive.
US companies joining has outnumbered the pace of departures but in general, the larger companies (those that joined with market capitalisations above $100 million) have done better than their smaller peers.
PINCHme plans to hold a shareholders meeting on January 29 and the delisting to occur on March 1. ASX shareholders will be allowed to sell their shares back to the company at 5 cents per share.
It is common for companies delisting from the ASX to cite being undervalued as a reason for delisting.