Nearmap the provider of high-resolution geospatial map technology, left investors guessing on Wednesday after it requested its shares be halted mid-session. The company said the halt was to “allow the company to respond to the potential legal proceedings”.
The trading halt, which is expected to last until Friday, came as its shares were on soaring on Wednesday morning. The stock was up almost 15% to $2.36 thanks to an after-market trading update on Tuesday afternoon.
Media speculation suggests the proceedings relate to a potential claim from a US-based rival.
Nearmap announced an increase to the company’s FY21 Annual Contract Value guidance to $128m-$132m (from $120m-$128m). On the back of a strong first-half performance, the company has seen momentum continue with growth across its core industry verticals from both new and existing customers.
Nearmap is continuing to invest the proceeds from its FY21 capital raise into key growth initiatives, including into the development of the company’s HyperCamera aerial photography system which captures overlapping photographs along a flight path covering a survey area. The system remains on track to be rolled out in FY22.
Commenting on the guidance announcement, Chief Executive Officer and Managing Director, Dr Rob Newman, said “With our refined go-to-market strategy still at a relatively early stage, I am very encouraged by the strong growth we are seeing across our ACV portfolio. This performance validates our strategy to focus on our core growth verticals of insurance, government and roofing, with the adoption of premium content types particularly strong from these verticals, driving returns from the investments we made into new and expanded content. The early success of our refined go-to-market strategy - which has delivered strong growth in FY21 - and the continued deployment of investments into this strategy gives us confidence that we remain on track to deliver on our 20- 40% ACV growth targets from FY22 onwards."