1-Page seeks to halt price slide

21/03/2016 - 15:27


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Silicon Valley-based 1-Page, which was an early mover in the wave of backdoor tech listings on the ASX, has sought to reassure investors after most of the spectacular share price gains it achieved in 2015 were wiped out this year. 

1-Page shares have lost about 77 per cent of their value since last September.

Silicon Valley-based online recruitment company 1-Page has sought to reassure investors it remains a viable business, after the company’s stock plunged about 77 per cent over the past five months.

1-Page told the market in a brief update today there had been no material change to its business, and that the shares held by the founders and promoters of the company remained in escrow until October this year – the second anniversary of its ASX listing after acquiring InterMet Resources in a reverse takeover.

"That status cannot be changed under any circumstances under the ASX rules," the company said.

1-Page shares were trading higher than $4 each mid-last year, even reaching as high as $5.44 at one stage in September, however after a $50 million capital raising in October, at a discounted $4.50 per share, the company’s stock has steadily declined to as low as $1.22 per share as of last Friday.

Following today’s announcement, 1-Page shares gained back some ground, closing 5.3 per cent higher to $1.29 each.

While the company expects to release its preliminary final report by the end of the month, 1-Page’s most recent quarterly report (released last month) revealed an increase in contract bookings to $4.2 million, however revenue generated totalled only $75,000.

During the same period, staff costs and research and development alone had cost the company about $3.1 million.

While the company’s share price has fallen significantly from its peak last September, investors who participated in 1-Page’s $9.6 million capital raising in February last year are still in the black; the raising was priced at $1.07 each.

1-Page’s first capital raising, undertaken when it first listed on the ASX in October 2014, was priced at 20 cents a share to raise $8.5 million.

Those who participated in that raising are still maintaining a healthy portfolio.


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