Pushpay’s [ASX:PPH] share price dropped by 5.24% yesterday, following the news that co-founder Eliot Crowther was leaving the business and cashing in on his portion of shares.
Pushpay has been in a trading halt since Monday, pending an announcement that would confirm the details of Crowther’s sell-out.
The software company’s shares are currently valued at $3.80, down from $4.01 prior to the trading halt.
Why is Pushpay’s co-founder cashing-out?
On Monday, Pushpay announced a fully underwritten bookbuild in order to sell down all shares owned by co-founder, executive director and sales executive, Eliot Crowther.
Crowther will have completely resigned from the company as of 31 July, 2018.
Pushpay have specified in an announcement that Crowther is stepping down ‘for personal reasons, to focus on his family’.
The sell-out was finalised yesterday, with all 24,793,798 shares held by Crowther sold at NZ$4.04 per share, making Crowther approximately NZ$100 million richer.
Chris Heaslip, Pushpay’s CEO was pleased with the outcome, stating that,
‘The bookbuild was well supported with bids from 19 institutional investors across New Zealand, Australia and the US.
‘The success of the bookbuild demonstrates strong support for Pushpay and understanding of our business proposition from a global perspective. The high level of interest and support assisted in delivering a successful outcome for the Company, our existing shareholders and new shareholders. The bookbuild attracted a number of high quality institutional investors, and the support received is testament to Pushpay’s business proposition, execution to date and future prospects.’
What’s next for Pushpay?
Bruce Gordon, Pushpay’s Independent Chairman, has stated that,
‘The board is actively searching for an additional US-based Director and is considering suitably qualified candidates of diverse backgrounds and experience.’
Despite the current lapse in investors’ confidence, Pushpay is positive about their future and their new shareholders. They are confident that their revenue guidance of between US$20.5 million and US$22.0 million for the quarter ending 30 June 2018 remains unchanged.
For Money Morning
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