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WANdisco plans $30m equity fundraise
Sheffield-based WANdisco, the data activation platform, is planning to launch an equity fundraise of $30 million.
In a statement to the London Stock Exchange, the company said that it is considering a range of funding options as it works towards the resumption of trading in the company’s shares on AIM.
It added: “Having reviewed the various options, the Board believes the most appropriate strategy is to launch an equity fundraise towards the end of June of $30 million to build balance sheet strength in order for the company to take advantage of the significant opportunities ahead.”
The company will commence a consultative process with investors to assess the potential for the proposed fundraise, balancing all the different priorities and risks.
WANdisco noted that the resumption of trading in the company’s shares on AIM will occur as soon as practicable, following careful consideration by the Board and in discussion with AIM Regulation, but that this will be after the completion of the proposed fundraise.
Ken Lever, chairman of WANdisco plc, said: “We have been working at pace to deal with the issues the company has faced and create a positive path forward. A lot has been achieved and I am particularly pleased to now have a world class CEO and CFO in place, who are both energised to see the company through this difficult period.
“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. However, improvements across sales and marketing need to be made to properly take advantage of the opportunity.
“To do this, the business needs to be urgently properly capitalised and so today we are announcing our desire to raise $30 million towards the end of June. Unfortunately, much of this capital requirement is a direct result of the issues that led to our announcement on 9 March. On completion of the fund raise I believe that the company can have a bright future.”
In March, “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee, [were] discovered.” Earlier this month WANdisco revealed that it is undertaking a reorganisation and review process that will reduce the company’s global headcount by approximately 30%.