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

Wednesday 3rd February 2016

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Wynyard Group 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 put in place by a resolution at a previous special meeting in December. The shares last traded at $1.61 and have dropped 13 percent 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.co.nz

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