Tech: Smart Parking’s $1.7m profit became a $2.6m loss, but suitor interest sends it up 39pc
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What a morning it’s been for Smart Parking (ASX:SPZ) shareholders. After falling up to 20 per cent at market open its now up 39 per cent.
The catalyst for the swing? On one hand the company’s books swung from a $1.7m profit to a $2.6m loss and shares dropped by nearly a fifth at the open.
But 15 minutes into trading, it made a substantial turnaround after the company revealed it had received acquisition offers and it was interested…but only at the right price.
The board told shareholders this morning it believed the ASX price was not reflecting the company’s strategic value and these offers vindicated this.
However it turned down several offers including a 28.4c-per-share offer from British car park manager Parking Eye.
The board was open to eventually accepting an offer, but were clear that a premium would be paid. “The board remains committed to maximising shareholder value,” it said.
“The board also remains committed to growing the underlying business but it would, consistent with its overriding duty to act in the best interests of shareholders, consider any credible offer that appropriately reflects the considerable strategic value of the business in its current form.”
Smart Parking offers various technologies that improve the parking experience, including in-app payments and number plate recognition.
Shares were as high as 54c in April 2018 but slowly fell over the following months. But today they advanced 39 per cent on Friday’s close despite the initial drop at market open.
Banking intelligence software 9 Spokes (ASX:9SP) signed another client, Bank of America. The bank’s small business customers will use 9Spokes’ solutions for the next three years.
Concrete additive maker Eden Innovations (ASX:EDE) has another received approval from another US state’s department of transport for the use of its EdenCrete – Tennessee. It is now approved for use in 12 US states, which collectively represent 27 per cent of the US’ population, 39 per cent of land area. These states also have 39,000 bridges that are structurally deficient or functionally obsolete. Eden Innovations wants to reach all US states. It told shareholders it has commenced “a program of lodgement of further applications” to achieve its goal.