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Shares in Diligent Board Member Services continued to tumble yesterday, albeit on light volume. Shares slid 15 per cent or 6c to a new low of 34c.
Six months ago, the New York-based software company listed on the New Zealand Stock Exchange, issuing shares at $1. Brokers said yesterday's fall was likely to be due to a shareholder losing faith.
Last week, the stock fell 24 per cent following a warning it was unlikely to meet the sales growth target in its prospectus, due to recession in the US.
The company sells and licenses software that looks after the paperwork for corporate board members.
In an unusual move in New Zealand, Diligent's original shareholders promised in its initial public offering to surrender up to 20 per cent of the original share capital if the company did not meet the licence fee sales target.
The company said that now appeared likely to be triggered in part or full.
The IPO turned into a fiasco when it was revealed founder Brian Henry had failed to disclose details about his and brother Gerald's connection to New Zealand company EnergyCorp which failed spectacularly in the 1980s.
- NZPA
