close
MENU
Hot Topic Hawke’s Bay
Hot Topic Hawke’s Bay
1 mins to read

Wynyard shareholders to vote on lifting share issue cap in two weeks

The company will hold a special general meeting where it will ask shareholders to ratify a placement in June last year.

Paul McBeth
Wed, 03 Feb 2016

Wynyard Group [NZX: WYN] shareholders will vote on granting the board more freedom to issue shares in two weeks after a downturn in global markets took the sheen off its existing plans to raise capital.

The Auckland-based company will hold a special general meeting where it will ask shareholders to ratify a placement in June last year, according to its notice of meeting. The resolution will effectively let the board sell about 24.7 million shares without a $2 price floor that was established in a resolution at a previous special meeting in December. The shares last traded at $1.61 and have dropped 13%  so far this year.

"Global volatility crystallised earlier than directors expected and these unforeseen market conditions are disrupting the company's ability to raise capital at this price at this time from the investors that expressed interest in late 2015," chairman Murray Horn said in his letter to investors. "Wynyard is a growth company that requires further capital in the short and medium term and continues to rely on support from shareholders and investors."

Wynyard shareholders agreed to let the board sell 15 million shares at a price of at least $2 at a special meeting in December after the security software developer drummed up investor interest during a roadshow.

If the resolution isn't approved, Wynyard will be limited to raising capital in 2016 subject to the price floor, which would hinder its "ability to meet its ongoing funding requirements and deliver the company's growth strategy, which may be detrimental to the company and its shareholders."

BusinessDesk receives funding to help cover the commercialisation of innovation from Callaghan Innovation.

(BusinessDesk)

Paul McBeth
Wed, 03 Feb 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Wynyard shareholders to vote on lifting share issue cap in two weeks
55206
false