GetSwift furious at ASIC intervention on move to Canada

GetSwift says it is “staggered” by the corporate watchdog’s decision to lobby Josh Frydenberg to block its mooted move to Canada.

Left to right; Bane Hunter, Michael Fricklas and Joel Macdonald. Pic by James Croucher

GetSwift says it was “staggered” by the corporate watchdog’s decision to lobby Josh Frydenberg to block its mooted move to Canada, and that the company is still optimistic the Treasurer will reverse his decision.

The company’s shares plummeted on Tuesday after Mr Frydenberg made a rare intervention and declared GetSwift’s planned move to Canada would be “contrary to the national interest” due to the company’s ongoing legal matters. The Australian Securities & Investments Commission, a key creditor of GetSwift, had objected to the move at a Federal Court hearing.

“We are staggered that all indications point that ASIC has not communicated the correct facts to the Treasurer when they lobbied for a decision, and trust that the court process this week will highlight them so we can move forward,” a GetSwift spokesman said.

“ASIC seems to be setting government policy without any regards to its mandate. It is staggering to think that the Australian taxpayer could ever be supportive of ASIC’s capital spend on this case, especially when they are already in the news with respect to their own lack of internal budgetary governance.”

The spokesman added that the company had received unanimous comments from shareholders in dismay that the Treasurer’s intervention represented a step towards “nationalising the company”.

“One has to wonder what exactly is going on at ASIC and to what purpose? This is clearly now a political issue for them and nothing else,” he said.

“The company and its shareholders will be consulting with its elected government officials to seek an investigation in ASIC’s behaviour, methodology, and look to highlight why the company and its executives have been treated in such a discriminatory fashion when compared to similar cases ASIC has undertaken.”

ASIC was contacted for comment.

Mr Frydenberg said in a letter to GetSwift, dated November 20, that he was mulling an order prohibiting the company from redomiciling under section 67 of the Foreign Acquisitions and Takeover Act.

“Without prejudging the outcome of Australian legal proceedings currently on foot, it is my preliminary view that the proposed acquisition would be contrary to the national interest at this time due to there being ongoing legal matters concerning the target which are yet to be resolved,” the Treasurer wrote.

“If the proposed acquisition and subsequent redomicile of the target were to take place before the current proceedings are resolved, this may have a negative impact on the interests of possible contingent creditors associated with those proceedings.”

The company, once a market darling, is facing a class-action suit related to alleged breaches of continuous disclosure laws.

The company intends to list on Canada’s NEO exchange, with Holdco to acquire GetSwift and its subsidiaries, but creditors including Raffaele Webb as well as ASIC have raised objections.

Earlier this month the company’s shareholders overwhelmingly vote to approve the plans.

GetSwift shares fell a further 3.5 per cent to 27.5c.