Wynyard Group cancels share placement

Craig Richardson, Wynyard Group chief executive.
Craig Richardson, Wynyard Group chief executive.

Wynyard Group has cancelled a planned share placement and special shareholders' meeting tomorrow, saying it is no longer viable and other capital raising options including a rights offer are being considered.

Its shares remain in a trading halt until it can make a further announcement in the next two days on its capital raising plans, the Auckland-based company said in a statement.

The security software developer's shareholders were scheduled to vote at a special meeting in Auckland tomorrow on a proposal to give the board more freedom to issue shares at a price below the previously announced floor of $2 per share, a plan that has been opposed by the New Zealand Shareholders' Association.

Ahead of the meeting, NZSA chairman John Hawkins had said there was no clear information about how the company would protect existing investors and that his members faced an information "black hole", although chief executive Craig Richardson said the company was "carefully considering a number of options including those that John (Hawkins) has provided."

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Shareholders had earlier approved the issue of up to 15 million shares at no less than $2 per share at a December meeting to meet Wynyard's ongoing working capital needs.

The company said taking into consideration global equity market volatility and prevailing capital market conditions, it was looking at other capital raising options, including a rights offer.

Wynyard's shares last traded at $1.54 and have shed 16 per cent so far this year.

- BusinessDesk

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