Spacetalk shares took off after it announced a key hire

Shares in wearables company Spacetalk went into orbit after it announced a high profile appointment.

Simon Crowther, former chief executive of Nearmap.

Tech minnow Spacetalk’s shares more than doubled in early trade on Thursday after it announced it had appointed former Nearmap chief executive Simon Crowther as its new managing director.

Mr Crowther led Nearmap through its scale up phase from late 2010-late 2015, in his own words taking it “from early prototype stage in Perth WA to international scaling to the US’’.

“We achieved 20-plus quarters of double digit growth, significant IP generation, long term competitive advantage and significant returns for shareholders. We created a new market and a unique SaaS model for geospatial data.’'

Spacetalk shares closed up 96.3 per cent at 5.3c each, after at one stage hitting 5.8c.

The company’s stock remains well off its 12 month highs of 15.9c achieved this time last year.

The company terminated the employment of founding managing director Mark Fortunatow in November active immediately, after firing him with 12 month’s notice the previous month.

At the time chairman Georg Chmiel said that while Mr Fortunatow had been a “driving force’’ behind the business over 21 years, “the board has formed the view that it is time for a change in leadership and direction’’.

The board received strong protest votes against most of the resolutions at its annual meeting in late November, including a first strike against its remuneration report with a vote of 38.76 per cent against, and a 43.4 per cent vote against the re-election of director and former South Australian state premier Mike Rann.

In late January Spacetalk said it had posted positive cash flow for the second quarter in a $3.3m turnaround from the previous quarter.

The company, which makes smart watches for children, said it had exited a low-profit product line and implemented a significant cost reduction program.

Mr Crowther followed his time at Nearmap with a role as CEO of Airmap and as managing director of Yamaha Motor Ventures in Silicon Valley.

“As soon as I met with the board and learnt more about Spacetalk I saw the opportunity to build an exciting business, target valuable sectors and execute in a focused and disciplined way,’’ he said in the company’s statement to the ASX.

“Spacetalk has an opportunity to make an impact for good as we help give children, parents, guardians, people ageing in place, care recipients and their carers freedom to live their lives. I am focused on building on the progress that has been made to date and realising the full potential of the business and the team.”

Mr Crowther is based in Vancouver but will relocate to Australia to take up his new role.

Nearmap was acquired by Thoma Bravo late last year for $1.05bn.

A notice to the ASX this week indicated Mr Fortunatow sold more than two million shares recently, leaving him with about 15.4 million.

Spacetalk is valued at just over $12m.

Originally published as Spacetalk shares took off after it announced a key hire