Wynyard calls special meeting to raise $30 million

Security software developer Wynyard Group [NZX: WYN] will seek shareholder approval to raise $30 million over the coming year through a series of private placements, after touting its wares on a roadshow for foreign investors.

The Auckland-based company wants to sell up to 15 million shares for at least $2 apiece, a 45% premium to the current trading price, after being well-received by institutional and high net-worth investors in Australia and the US during its October roadshow.

Shareholders will vote on whether to approve the series of placements over the next 12 months at a special meeting on December 11 in Auckland.

"The board is optimistic this presents a good opportunity for Wynyard to raise capital at a premium to the current market price, rather than at a discount," the company says.

It believes the current share price, driven by the thinly traded market, is not reflective of the company's value considering its market opportunity and relative to pre-IPO and listed peers in other tech-savvy markets.

The shares last traded at $1.38 and have shed 29% this year.

Wynyard is forgoing short-term profit as it chases global market share and raised $42.6 million in a placement and share purchase plan in June and July, which will fund an expanded workforce and operations, and research and development.

The company had cash and equivalents of $41.1 million as at June 30, and raised a further $2.6 million through the share purchase plan after the balance date.

If shareholders approve the capital raising, Wynyard will use the funds to grow its sales and partner network, expand operations in the US and the Middle East, invest in research and development, and for general working capital.

If Wynyard doesn't get approval it won't be able to raise significant amounts of capital until June next year, which the board says isn't in the company's best interests and that it wouldn't be prudent to wait that long to raise new funds.

Wynyard affirmed annual revenue guidance to be between $40 million and $45 million in calendar 2015.

(BusinessDesk)