Dye & Durham shares sink as the submission of delay threatens the turnaround

(Bloomberg) – The shares of Dye & Durham have dropped after the legal software provider said it would miss the deadline for submitting its annual report, and added another obstacle for a company that had already had pressure from an activist shareholder this year. The share dropped to 22% on Tuesday, the deepest drop in the intraday since public listing in 2020. This has briefly dropped its share price to a low of C $ 8.10 ($ 5.89). “The delay of the filing will contribute to the issues weighing the share, which includes the financial leverage, a challenging macro background, competitive problems and management turnover,” said BMO Capital Markets analyst Thanos Moschopoulos. The move comes after Dye & Durham launched a strategic review at the end of July – including a potential sale – to a ceasefire with one of its most important shareholders, Planttro Ltd. The investment firm controlled by the former CEO of Dure & Durham has agreed to withdraw his demand for a special shareholders’ meeting in exchange for veteran computer, David Danzinger in the board to post the review. The company, which sells software solutions to legitimate and business people, said after the end of Monday that it would not submit its financial statements for the financial year ending in June by the September 29 deadline. The management said the issue was related to a review letter by the Ontario Securities Commission sent in July, which expressed concerns about how Dye & Durham reveals tests for goodwill disabilities and certain purchases in its financial statements. Dye & Durham said it works with advisors and the regulator to confirm the consequences for its finances. The firm said it did not expect an impact on the previously reported results. “Although this development can weigh on the stock in the short term, we do not expect this development to affect our forecasts,” Moschopoulos of BMO wrote in a client note. The delay would put Dye & Durham under his existing senior debt obligations in technical default, giving the company 30 days to correct the issue, Moschopoulos said. Monday’s news was not ‘unexpected’, as the interim CFO Sandra Bell is new to the company, Raymond James analyst Stephen Boland said. “As far as the possible disabilities are concerned, this is also not a new case,” Boland said, adding that it was mentioned at the conference calls in the past. “In addition, the company publicly said that it is re -pricing its customers, which could lead to disabilities.” More stories like these are available on Bloomberg.com © 2025 Bloomberg LP