Zyber Holdings Ltd (ASX: ZYB)

Zyber Holdings witnessed a stock price fall of about 23% on March 19, 2018 as the news of lifting of suspension of trading in the securities came in with an announcement regarding a potential investment in a private company. The group has advised that the investment in the private company that it was reviewing will not be proceeding, and this has led to a hammering of the stock by the investors. Meanwhile, the Board aims to review opportunities to further develop the Zyber platform and its portfolio of product offerings. The group had earlier requested for extension in the suspension of the Company’s securities owing to its target of a potential investment in the privately held company, and it was granted a voluntary suspension on February 16, 2018 until the earlier of release of the Announcement or the commencement of trading on March 19, 2018.

On the other hand, Zyber has been given approval to dual list on the Frankfurt Stock Exchange (under the symbol “DRL”). The listing on Frankfurt Stock Exchange, which is the world’s 10^th largest stock exchange by market capitalization and is owned and operated by Deutsche Börse AG, is a positive news for the group, as ZYB generates 90% of its turnover in Germany, through three trading venues Xetra, Börse Frankfurt and Tradegate, and the Frankfurt Stock Exchange is the largest of the seven regional securities exchanges in Germany. Through this, Zyber will have access to the European investor community and would be able to increase the exposure of the Company as it continues to enhance and develop its secure file sharing software platform. Thus, promoting the software platform over the coming months to the European investment community and discussions in terms of potential industry alliances, are indicated to be on the cards by the group.

For the half year ended 31 December 2017, ZYB’s revenue was up 25% to $16,137 and loss after tax narrowed by 75% to $376,230 from $1,505,082. During the first quarter of the year, the Zyber development team completed the launch of the Zyber Enterprise application as a free beta product, to help customers register a private domain with 2GB of space and then test drive the platform for free. This was followed by monitoring and resolving issues with the beta stage Zyber platform during the second quarter. ZYB also provided a new feature to help upload files and integrate with zapier.com (online service that allows end users to integrate the various web applications they use). The group now aims to start integrating other storage solutions and abstracting Zyber’s data layer to allow storage anywhere in the second half of the year.

It will be prudent to watch the stock movement in the wake of the recent developments.
 

Half year results (Source: Company Reports)

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