How this AFL star lost $160 million in the blink of an eye
Joel MacDonald was on top of the world 16 months ago.
The former Melbourne Demon debuted on the Australian Financial Review’s Young Rich List in 2017, after his company’s value skyrocketed.
MacDonald was a co-managing director of tech company GetSwift, whose share price rocketed up to $4.30 – netting the 175 game veteran more than 160 million dollars at the time.
All that has come tumbling down.
The Australian Investments and Securities Commission has announced two of the company’s most senior executives will front Federal Court in March.
ASIC commences civil penalty proceedings against GetSwift Limited and its directors Bane Hunter and Joel Macdonald https://t.co/dQ0yctApJF
— ASIC Media (@asicmedia) February 22, 2019
The share price has plummeted since, from the aforementioned high to a low of just 28 cents per share.
The investments watchdog will allege McDonald and former chairman Bane Hunter contravened the Corporations Act on multiple occasions, misleading the market about the size of several contracts the company had signed.
The cost to MacDonald alone has been staggering.
Fairfax Media reported the former Demon would likely have lost up to $160 million alone as a result of the plummeting share price.
He and Mr Hunter are both set to contest the charges.
“The company, Mr Macdonald and Mr Hunter irrefutably deny the allegations made by ASIC and, collectively, will vigorously defend the proceedings,” the company said in a statement to the ASX on Monday.
ASIC had announced early in 2018 that GetSwift was under investigation, after reports it had not updated the ASX about the value of key contracts.
GetSwift’s value soared in 2017 as it announced key contracts with the likes of Pizza Hut and LoneStar.
Despite the stock price plunging, the Financial Review reports the company still holds approximately $87million in cash and equivalents with the bank.
