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GeoOp graduates to NZX main board from NZAX

GeoOp, the workforce management app, will migrate from the New Zealand Alternative Index to the NZX main board after flagging the possibility of further capital raising to fund its growth.

The Auckland-based company will apply to the Wellington-based stock exchange operator to graduate from the minnow bourse to the main board, it said in a statement. GeoOp, which is in the middle of shifting its balance date to June 30, from March 30, reported annualised revenue rose 72 percent to $1.4 million at June 30, from a year earlier.

GeoOp is foregoing profits and dividends as it invests in product development and chases customers. The company is counting on capturing market share through the growing use of smart phones, where its app can be used by small and medium sized enterprises to manage their workforces.

In May the company flagged it was considering options for a capital raising, and today said "no firm amount or structure has yet been determined, the board expects to update shareholders in due course". At March 31, the company had $2.5 million in cash and short-term deposits, down from $4.5 million a year earlier.

The company raised $10 million at $1 a share in a private offer before listing on the NZAX in October 2013. The shares last traded at 40 cents, and have fallen 56 percent over the past 12 months.

GeoOp's move to the main board skirts NZX's new market, NXT, which targets small-to-medium sized enterprises with a less onerous disclosure regime and lower listing costs. Currently G3 Group, a mail services business, is the only listing on NXT, which will eventually replace the alternative index.