Sharechat Logo

Xero shares halted pending outcome of capital raising

Thursday 10th October 2013

Text too small?

Shares in cloud-based accounting software developer Xero have been halted pending the outcome of a capital raising.

The Wellington-based company sought the halt for up to 48 hours "pending release of a material announcement by Xero Limited in relation to the outcome of the capital raise," it said in a statement to the ASX.

The shares slipped 0.3 percent to $17.95 on the NZX before the halt, having more than doubled this year.

The company last raised money in November last year when Peter Thiel's Valar Ventures and Massachusetts-based Matrix Capital Management injected $60 million of new capital, while buying $22 million of shares from director Craig Winkler, chief executive Rod Drury, and co-founder Hamish Edwards at the same time.

Xero has been burning through funds as it posts short-term losses as part of a strategy to build a one million-strong customer base, holding cash on hand of $55 million as at June 30. By the end of last month it reached 211,000 customers with annualised revenue of $70.6 million.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Xero’s Drury says $180M capital raise ‘sends strong signal’ to competitors
Xero raises $180M selling shares at premium to Matrix, Thiel, others
Xero adds another 36k customers since March, sees 80 percent lift in 2014 sales, wider loss
Xero tells NZX that 23 percent slump in shares reflects volatility in tightly held register
Xero cracks $2 bln market cap, lifting Drury's paper fortune to $388M
Xero topples Port of Tauranga as highest price local stock on NZX
Xero chair, COO book million-dollar paydays after shares more than triple in past year
Xero posts $14.4 mln FY loss, doubles revenue and paying customers
Xero adds 23k customers since September, expects to double annual sales
Xero adds 23k customers since December, expects to double annual sales