Yorkshire data tech specialist WANdisco says shareholders have backed plans to raise $30m and instigate a turnaround plan that includes job cuts.
The move comes in the wake of a potential fraud which has seen the company's finances drastically changed and led to a suspension of its share on the London Stock Exchange. Chairman Ken Lever, brought in to lead an investigation into issues concerning one senior salesperson and a £12m hole in the company's accounts, recently talked of the "urgent need" for the firm to raise money.
Now, having toured investors to make its case, WANdisco is preparing to launch the fundraise which it aims to complete by the end of the month, along with publication of audited 2022 accounts which investigators have suggested could see revenue downgraded from about £19.2m ($24m) to just £7.7m ($9.7m).
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An update on the investigation being undertaken by FRP Advisory suggests there are eight companies from which purchase orders turned out to be fake. Investors were told: "The findings of the independent investigation confirm that there are no recent contracts, revenues, proofs of concept, technical engagements or sales relationships between any of these eight companies and WANdisco."
WANdisco said the funds raised would be used to boost marketing efforts in a bid to improve its sales pipeline, as well as for working capital. As part of its medium term turnaround plan the firm hopes to expand the scope of its technology to attract more customers.
Last month, 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."
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