Strategic Review Initiation

K2fly Limited (ASX:K2F) has appointed Argonaut PCF and Atrico as Joint Financial Advisors to initiate a strategic review of the business. The strategic review aims to identify and evaluate alternatives to realize the full potential of K2fly and maximize shareholder value. This decision follows the company's September 2023 quarterly report.

Executive Commentary

Despite continued high growth and a significant addressable market in Resource Governance coupled with strong ESG tailwinds, there has been a significant gap in how the equity market is valuing K2fly. As such, it is the responsibility of the board to assess alternative capital structures to provide the best opportunity for continued success of K2fly and realize the best shareholder value. The process will begin this side of Christmas, and the Board anticipates that it will be able to update the market in the first quarter of calendar 2024. Management will continue its dual focus on continued market growth and attainment of cashflow breakeven. Opportunities for Resource Governance within our chosen markets of global resources continue to grow strongly, and we are now seeing increasing opportunities in partnerships, and adjacent markets including linear assets, renewables, and oil and gas.

Strategic Review Summary

K2fly Limited (ASX:K2F) has initiated a strategic review to identify and evaluate alternatives to realize its full potential and maximize shareholder value. The company has appointed Argonaut PCF and Atrico as Joint Financial Advisors for this purpose. The strategic review will assess the strategic requirements and optimal corporate structures, potentially leading to third parties submitting proposals that will deliver value to K2fly shareholders. The Board anticipates updating the market in the first quarter of calendar 2024. K2fly aims to continue its focus on market growth and attainment of cashflow breakeven, with increasing opportunities in partnerships and adjacent markets. The company's strategic alliances with global technology companies position it well to capitalize on the growing opportunities in Resource Governance within global resources and adjacent markets.