Wynyard announces rights issue
Shares plummet as heavy discount revealed.
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Hawke’s Bay
Software company Wynyard Group [NZX: WYN] has taken a step toward easing its cash squeeze with the announcement of a $30 million rights issue.
The offer of one new share for every four held will be priced at 85c, a large discount to the last price of $1.54 before a trading halt was imposed.
When trading resumed at 10am this morning the stock immediately plummeted as low as 80c before settling at around 94c, a decline of 39%.
The company, whose software is used to combat crime, said it expects the offer to be fully taken up with the support of existing and new shareholders.
Investment bank First NZ Capital is advising on the offer and will act as Wynyard’s exclusive financial adviser on a continuing basis.
Wynyard chief executive Craig Richardson said the company was delighted to get strong support from shareholders. “It’s encouraging to see such commitment to the long-term success of the company,” he said.
“We continue to see rising demand for our products from customers with increasing security concerns. Our strategy of targeting larger contracts is proving successful and we now have a qualified 2016 financial year pipeline which exceeds $90 million and our average deal size has increased significantly. This gives us confidence in our strategy going forward and our pathway to profitability.”
Yesterday Wynyard said it had “a material dependency” on raising capital by the end of March after an expected $30m placement to new investors fell through.
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Tim Hunter
Wed, 24 Feb 2016
Wed, 24 Feb 2016
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Wynyard announces rights issue
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