Wynyard share placement 'no longer viable'
Software company's cancels shareholder meeting.
Software company's cancels shareholder meeting.
A shareholder meeting scheduled for tomorrow to approve a capital raising for crime-fighting software company Wynyard Group [NZX: WYN] has been canned, with the company saying a placement is not viable.
"Wynyard has now determined that a share placement at a sufficient level to meet its ongoing working capital needs is no longer viable at this time and as such placement negotiations have now terminated. Accordingly the special meeting has been cancelled,” the company said.
“Taking into consideration global equity market volatility and prevailing capital market conditions, the company is considering other capital raising options, including a rights offer.”
Wynyard shares, which were halted this morning, will remain in trading halt pending a further announcement about capital raising plans. Wynyard said it expected to make an announcement within 48 hours.
Wynyard's shares last traded at $1.54 and have shed 16 percent so far this year.
Shareholders Association chairman John Hawkins, who had expressed concern about a lack of information for investors ahead of the meeting, said Wynyard’s announcement was unexpected.
“It appears the investors the company had in mind have pulled out for whatever reason,” he said.
While Wynyard was naturally seeking to raise capital its efforts to bring in new investors through a placement had not produced results.
“They’ve now gone round in circles and come back to square one,” said Mr Hawkins. “It’s an unsatisfactory situation and shareholders deserve an explanation.”
Among the Association’s concerns was the potential for existing shareholders to be diluted by a large placement with little information offered to them about the terms of the deal.
A $30 million placement at a minimum of $2 a share, announced last year, was shelved last month as sharemarkets were hit by waves of selling.
The latest shareholder meeting was aimed at allowing Wynyard to raise money through a placement at less than $2 a share, although the exact price was unspecified.
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