Data tech firm WANdisco is hoping to see its shares re-admitted to the London Stock Exchange later this month amid a bid to raise £23.5m ($30m).
The effort is part of a turnaround plan for the beleaguered Sheffield company which saw trading of its shares on AIM suspended following revelations of possible fraud. Recently the firm said it would issue 47,528,517 new ordinary shares at an offer price of 50p per share.
Newly installed interim chief executive Stephen Kelly, a prominent tech figure and existing WANdisco investors, has subscribed to a further 850,000 shares worth £425,000 as part of the move, along with pledges from chairman Ken Lever and other directors.
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Existing significant shareholders Global Frontier Investments and Davis Capital Partners have also provided backing of £2.1m and £2.7m respectively. The fundraise had expected to close today (July 7) but legal requirements in Jersey, where the firm is registered, mean shareholders must approve the exercise at a general meeting now scheduled for July 24.
In an update earlier this week WANdisco said it had consulted with and received strong support from many of its largest shareholders before launching the fundraise. It said: "The company has respected the principles of the soft pre-emption, so far as possible, through the allocation process. As previously announced, the company was unable to include a retail offer due to regulatory restrictions and limited time to complete the Fundraise. The company's management team actively participated in the structuring and allocation of the fundraise."
WANdisco's full year 2022 results are expected to be published soon. The year was described as "wasted" by Mr Kelly as he announced preliminary results that showed an Ebitda loss of $30.1m.
False purchase orders and related revenue and bookings in that year are thought to have caused a £12m hole in the company's accounts. An investigation into the "irregularities" found they stemmed from one senior salesperson.
Liberum Capital Limited and Stifel Nicolaus Europe Limited are acting as joint bookrunners for the equity fundraise.
