Wynyard trading halt extended to Tuesday

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

Wynyard Group will stay in a trading halt until February 23, pending an announcement by the software developer over its capital raising plans.

Trading in the company's shares was halted on Wednesday at Wynyard's request, when it also cancelled a planned share placement and special shareholders' meeting, due to be held yesterday. It said the placement was no longer viable and other capital raising options including a rights offer are being considered.

Wynyard sought an extension of its trading halt as it works with advisers on its capital raise process, it said in a statement this morning.

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"The company expects to be in a position to make an announcement on 23 February 2016 and will remain in a trading halt until it makes this announcement," it said.

NZX Regulation confirmed the trading halt would remain until the company makes a further announcement.

The security software developer's shareholders had been scheduled to vote at a special meeting in Auckland 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 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."

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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