Tikforce admits: JobSeeker contract failed to fly
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Under-fire human resources platform Tikforce has retracted all statements made last year about a possible $1.9 million contract — and revealed just how much it made from the arrangement.
Stockhead first covered the story a month ago. Here’s the background:
> Questions raised over $1.9m Tikforce deal
> Tikforce is hoping its man in Kyrgyzstan comes through with cash
Tikforce made a total of $114,258 from the government’s JobSeeker program.
In a response to a detailed ASX inquiry about the contract, Tikforce (ASX:TKF) retracted “without any admission of liability” statements made in April, July and August last year that it was on-boarding clients in the program.
The stock (ASX:TKF) has been in decline since it backdoor-listed on to the ASX in 2016.
The HR tech stock is fielding fire from a group of angry shareholders who are currently suing it.
The owners of a convertible note — including former Tikforce corporate advisor and major shareholder Alignment Capital — allege the company lost the contract and did not tell the market, thereby breaching the terms of the note.
This Tikforce vehemently denies, saying it “continues to communicate with the jobactive network providers” but new onboarding is dependent on welfare law reform coming in July.
Alignment is also suing for unpaid advisory fees.
Last year Tikforce said it was going to:
What Tikforce told the ASX:
The company said it figured the $500,000 forecast was accurate based on conversations with a regional JobActive manager.
They now say the $1.9 million figure wasn’t a forecast but thought they’d make it anyway as that was what they got when multiplying $190 by 10,000.
Tikforce has had a few issues with contracts in the past, with one being torn up in 2016 and another, Kapuddle, telling Stockhead the contract in the form given to the ASX never existed.
The company is supposed to be back on the market today after being suspended since March 19.