A confession by the logistics software company headed by former AFL player Joel MacDonald, GetSwift that it had not disclosed the loss of key contracts to its investors has failed to appease the Australian Securities Exchange.
The ASX extended its suspension of GetSwift's shares on Thursday despite the one-time market darling responding to a lengthy written query from the market operator.
ASX told the market the suspension was the result of "further enquiries by the ASX", citing a rule that relates to a company breaking the rules that apply to listed companies or being "unable or unwilling to comply" with listing rules.
The ASX is believed to be concerned that GetSwift has announced contracts, including customer and sometimes revenue projections, when it confirmed on Thursday that "clients that wish to no longer use the platform simply cease using it".
It is also understood to be concerned about gaps in the answers GetSwift provided to an inquiry by the ASX that was made after it emerged the company had not told investors it had lost key contracts it had once boasted.
Its announcements about deals with the Commonwealth Bank and Amazon are also under scrutiny.
GetSwift's market capitalisation has increased dramatically over the past 12 months to a staggering $550 million on the back of a series of announcements to the ASX about contracts it had secured with big name clients such as the CBA and Amazon.
The company raised $75 million from investors in December after its share price more than doubled on the back of it announcing it had signed a deal with Amazon. Its shares were trading at $2.92 ahead of the suspension.
The jump in GetSwift's value led to the 22 per cent stake held by Mr MacDonald, who played AFL for Melbourne Football Club, to be worth more than $120 million.
The company said on Thursday it "categorically denies that it has failed to report material information".
"GetSwift takes its compliance obligations seriously. Clearly the integrity of its disclosures is paramount to a successful partnership with its shareholders and the market generally," the company said.
GetSwift appears to have also not told its investors about the departure of its chief technology officer Keith Urquhart shortly after its float.
This was despite the company saying in its prospectus that: "The company is substantially dependent on the continued services of its managing director, executive chairman and chief technology officer".
On Thursday, GetSwift said it did not update the market about its contract with The Fruit Group being cancelled because the 4 per cent share price rise on the day of the announcement did not indicate the contract was material.
It also said that when the contract was cancelled in March it was in talks with the Commonwealth Bank for a new deal that changed the company's concept of what was and what was not material.
Responding to the ASX inquiry about why it did not reveal the loss of these contracts, GetSwift said it typically granted a 90-day proof of concept (POC) trial period to its customers and that it did not believe disclosing this element was material.
GetSwift's shares are expected to dive when it resumes trading, according to retail investor platforms.