Aerial mapping provider Nearmap has been forced by the ASX to explain its disclosure of a legal battle with US rival Eagleview that sent its share price sharply lower this month.
Legal action by a US rival has clouded the future of Nearmap’s fast growing US business despite the aerial mapping provider saying it will vigorously defend itself against allegations of patent infringement.
The ASX-listed aerial mapping provider has flagged additional investment to expand its US operations,with investors applauding the company’s latest numbers.
Aerial mapping provider Nearmap,under fire after a high-profile short seller said it was using accounting tricks to boost its sales figures,has been backed by several analysts who played down the claims.
Beijing-based short seller J Capital has targeted another Australian tech stock,with the release of a report alleging aerial mapping provider Nearmap has been hiding a poor performance from its crucial US market.
Aerial mapping provider Nearmap is taking advantage of a recent year-high share price to raise $90 million from investors and accelerate growth plans.
The aerial mapping provider has indicated that its business is recovering from COVID-19 after reporting that trading conditions for the current year to date are in line with a year ago,but the market focused on a doubling in losses compared to the prior financial year.
A stumble in the autonomous vehicle sector earlier this year has proven to be more of a challenge than COVID for aerial mapping provider Nearmap.
Aerial imagery software Nearmap was used extensively in the search for a person missing for three weeks.
Shares in aerial imagery outfit Nearmap shares have soared after it noted annualised contract values were expected to land in line with consensus forecasts.
Shares of aerial image maker Nearmap plunged 15 per cent this morning after the company reported that losses widened for the year ending June 30 and declined to provide guidance for the current year.