GeoOp lifts sales, cuts ebitda loss in 2017 as it prepares for ASX shift
By Sophie Boot
July 20 (BusinessDesk) - GeoOp, the unprofitable management app developer, says sales nearly doubled in 2017, as it
prepares to shift its operations to Australia.
On Friday, shareholders voted to relocate the company to the ASX from the NZAX and raise funds via an initial public
offering that could dilute their holdings by as much as 40 percent.
The company plans to raise at least A$3 million with over-allocations, with shareholders voting for the board to issue
up to 35.29 million shares at a price range of 17-19.5 Australian cents. As well as the shares, it may issue up to 13.2
million fully paid options, with an exercise price of not less than 30 Australian cents. GeoOp must achieve a post-IPO
capitalisation of A$15 million under the ASX listing requirements in order for the listing to proceed.
Revenue rose to A$4.2 million in the year to June 30 from A$2.1 million a year earlier, while its loss on an earnings
before interest, tax, depreciation and amortisation basis narrowed to A$2.9 million from A$3.1 million. Average monthly
cash burn dropped to about NZ$230,000 from NZ$320,000 in 2016, it said.
The company said it is trending towards breakeven and "IPO funds will enable acceleration of marketing spend to drive
growth rates." Based on between A$2.5 and A$3.5 million in new cash and revenue growth of 30 to 40 percent, it expects
to break even within 24 months.
GeoOp went public in 2013, selling shares at $1 apiece in a private offer before its compliance listing on the NZAX
Alternative Index. The stock last traded on the NZAX at 22 cents, giving it a market capitalisation of $16.3 million.
The move to an ASX listing would follow its business, with Australia now accounting for 60 percent of sales and its
management team already across the Tasman.
The 2017 costs included A$400,000 in one-off expenses including its acquisition and integration of GeoSales, and
preparation for its planned IPO and move to Australia. GeoOp aims to register its prospectus by July 24 and list on the
ASX by Sept. 8.
(BusinessDesk)