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WANdisco PLC on Monday said it will launch a $30 million equity fundraise towards the end of June, having considered various options as it works towards the readmission of its shares on AIM. WANdisco, a Sheffield, England-based data migration platform, said the fundraise will give it a stronger balance sheet and more financial flexibility, give it sufficient capital to continue as a going concern, and allow it to ‘take advantage of the opportunities ahead’. WANdisco said it may lack sufficient shareholder authorities to issue enough shares needed to deliver the fundraise. A general meeting therefore will take place for shareholders to authorise the allotment. The company said it will use proceeds from the fundraise for general working capital business and to underpin marketing, sales and research and development infrastructure, and to enhance business development. It hopes this will accelerate new customer launches, commercial partnerships and the growth of its sales pipeline. WANdisco said it has a net cash balance of $8.1 million with no debt facilities as at April 30. It expects this to provide sufficient working capital until mid-July. WANdisco shares were suspended from trading in March following the discovering of ‘sophisticated’ fraudulent activity by a senior sales employee. On May 4, the company said it would cut its global headcount by about 30%. WANdisco was removed from the FTSE AIM 100 and FTSE AIM All-Share indices last Tuesday. Chair Ken Lever commented: ‘We have been working at pace to deal with the issues the company has faced and create a positive path forward...Having now been in the business for some six weeks, there is no doubt in my mind that the company should have a very bright future given its differentiated technology.’ He added: ‘On completion of the fund raise I believe that the company can have a bright future.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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