Reffind director sells down shares three months after joining board
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A director of software maker Reffind sold a large chunk of shares on Friday, reducing his stake to just 100,000.
Timothy Shaw sold 6.75 million shares owned via a company called Carrara Wealth Group for $136,562, or an average of 2c a share.
The sale took place on October 24 and 26. Mr Shaw has been contacted for comment.
Reffind, which listed in 2015, makes online recruitment and employee engagement software. Earlier this month Reffind also jumped on the blockchain bandwagon, appointing an advisor as it seeks to invest in the market for digital currency.
Reffind (ASX:RFN) shares hit a five-month high of 2c on October 23. They closed Friday down 12 per cent at 1.5c.
This year it reduced its full year loss from $9 million to $2.7 million after staff cuts and a new focus.
But revenue remained “relatively static”, with cash from subscriptions rising 11 per cent to $523,000.
Mr Shaw sits on the boards of several other companies and is the managing director of Stirling Wealth Group.
When he joined the board of Reffind in August Mr Shaw initially reported an interest in the company, owned through Stirling, of 27.1 million shares, or just over 9 per cent of the company.
Company secretary Robert Lees told Stockhead there had been some confusion around what Mr Shaw had to report as a direct stake, but legal advice said that since he didn’t control Stirling it didn’t need to be listed as a director’s interest.
Stirling sold two lots of shares in September totalling 4.8 million, for $58,000, which means it’s no longer a substantial shareholder.
A spate of activity
There has been a spate of corporate activity in Reffind this year.
Listed venture capitalist Chapmans (ASX:CHP) bought a shareholding of just over 5 per cent in March.
Chapmans owned 15 per cent of Digital4age, a tech “foundry” to grow and fund tech businesses. Mr McGrath is also a partner of Digital4ge, according to his LinkedIn page.
Digital4age owned about 45 per cent of Reffind.
Chapmans requisitioned a meeting to get Reffind shareholder approval to buy out Digital4ge and remove Reffind founder Benjamin McGrath from the board, replacing him with their own executive director Peter Dykes.
Chapmans already had one director on the board, its chief investment officer Anthony Dunlop.
He joined in November when chairman Peter Clare and director Geoff Morgan resigned to make room for more representation on the board from major shareholder Digital4ge.
The acquisition was approved in April, and Chapmans sold its 5 per cent stake in Reffind shortly after. It then also sold Digital4ge’s stake in Reffind down to 35 per cent.
Stirling Wealth Group later succeeded in having Mr McGrath replaced by Mr Shaw in August.
This wasn’t the first time Mr Shaw and Mr Dykes had interests in the same company.
Their last joint public board appointment was in September 2015 to Stirling Products, a company that had been in administration since 2011 and was delisted in 2016. Stirling also received loans from another of Chapman’s investments which Mr Dykes sits on the board of: wannabe cannabis company Capital Mining.