Wellington Drive raises $7.7m

Tuesday 21st September 2010 4 Comments

Wellington Drive Technologies, the manufacturer of electric motors, raised $7.7 million in a share purchase plan and placement to professional investors at a 17% discount.

The company raised about $2 million from its share purchase plan, selling some 28.8 million shares at 7.038 cents apiece, and it raised some $5.6 million from a private placement at the same price. The shares were unchanged at 8.5 cents in trading today.

WDT will use the funds to finance ongoing development and expansion plans and is prepares increased sales and the launch of new products, according to share purchase plan document.

The capital injection adds to the $8.5 million raised this time a year ago when Australian ethical fund manager Hunter Hall Investment Manager bought 85 million shares at 10 cents each.

Businesswire.co.nz

Comments from our readers

On 21 September 2010 at 2:41 pm robert said:

Is WDT ever going to make profits and stem these ongoing losses or is it just a game for directors to keep raising money using a flawed business plan? - Loyal shareholders simply see the value of their holdings continually drop and never a positive return or dividend

On 21 September 2010 at 5:06 pm N Sherwin said:

I absolutley agree, I have been invested in WDT for quite some time now and every time that they issue a statement they keep promising they will soon be making a profit, so come on get weaving.

On 22 September 2010 at 7:45 am Ian said:

I too am a long time WDT investor but have refused to put any more money in over the past 5 years. It's just a badly run cash burner making good money for a handful of Directors and Senior Managers.

On 22 September 2010 at 1:22 pm Bo Ekman said:

WDT is a small company that has always been under capitalized. Their business plan has sometimes been flawed and consequently had to be changed. Over the past years they have slowly built up their manufacturing capacity, logistic's and a world wide sales organisation. I believe they are now on the right track although do not know if the share holders will still support them in a further capital raising, it is break or make time