TradeWindow flags cuts after raise falls short

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NZX-listed TradeWindow says it secured just $5.4 million with a discounted rights issue that targeted up to $20m.

The capital raise was not underwritten. and was extended a week beyond its original deadline.

The maker of software for import/export logistics will now look to cut costs.

“In this challenging capital market we will reduce cash usage to a more sustainable level by re-prioritsing R&D investments and identifying cost efficiencies - without impacting our ability to continue to service our customers, meet market demand, and generate revenue from existing solutions,” the company said in a market filing.

“The reduction in capital requirements will impact the speed at which we can consolidate existing solutions into the global trade platform. TradeWindow remains committed to this strategy and to achieving profitability. We will release revised financial projections following the conclusion of funding plans.”

New shares for the rights offer will be issued on March 6 at a price of 45c (a 10 per cent discount on the closing day prior to the launch of the offer).

Shares were down 2.44 per cent to 40c in early trading.

The stock is down 82 per cent for the year.

On November 17, TradeWindow reported a first-half loss that widened 18 per cent to $7.1m on revenue that rose 16 per cent to $2.4m.

In a January 13 trading update, the firm lowered its FY2023 revenue guidance from $6m-$7.5m to $5.5m -$5.8m, saying “Some implementations continue to take longer than expected. This means revenue previously expected in FY2023 will be pushed into FY2024.”

TradeWindow expects revenue guidance to be approximately $10.4m for FY2024 and approximately $20.2m for FY2025, the firm said in a market filing.

It is targeting breakeven by the end of FY2025, with the proviso that its forecast is “Subject to ongoing geopolitical and environmental uncertainty including the impact of ongoing supply chain challenges, and the timing of customer decisions and implementations.”