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.

PINCHme listed at 50 cents per share in October 2018, timed its listing poorly with a global market plunge and has never recovered (unlike many of the other companies that listed at that time).

The company’s shares sat at 4.3 cents on Monday and dropped further to 4 cents at market open this morning.

PINCHme (ASX:PIN) share price chart


PINCHme leaving the ASX

Today the company told shareholders it was seeking to delist from the ASX. The ASX has given it blessing to go so long as shareholders sign off.

PINCHme credited several reasons including low trading volumes and thus disproportionate costs of listing.

It also noted being a USA company listed abroad it is difficult for investors back home to chip in.

It argued it might be able to attract new investments from the US if it went private, being consequently more attractive.

PINCHme is the fifth US stock to delist from the ASX in the past couple of years joining OneMarket (ASX:OMN), AirXpanders (ASX:AXP), Reva Medical (ASX:RVA) and GI Dynamics (ASX:GID).

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.

Two examples of success stories have been Nitro Software (ASX:NTO) and Sezzle (ASX:SZL) which are up 72 per cent and 436 per cent respectively since listing.


What now for shareholders?

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.