Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Wellington Drive seeks $5M from shareholders in note offer

Wellington Drive seeks $5 mln from shareholders in convertible note offer

By Paul McBeth

March 10 (BusinessDesk) - Wellington Drive Technologies, whose annual accounts were tagged by auditor PwC over forecast cash flows, will raise $5 million selling mandatory convertible notes to shareholders to help fund growth aspirations.

The notes will be sold in a renounceable pro-rata one-for-five rights issue to existing shareholders at 20 cents apiece, a premium to the last trading price of 18 cents. The mandatory convertible preference shares will pay annual interest of 5 percent, and convert at the end of a three-year term. The conversion will be one-for-one if Wellington Drive’s share price is more than 24 cents, or at a higher ratio if the price is 24 cents or lower.

The offer is underwritten by SuperLife, which holds about 19.7 percent of Wellington Drive, and other institutional shareholders have committed to take up their entitlements.

“We believe we now have a stable platform on which to win further new customers and deliver growth,” Wellington Drive chief executive Greg Allen said in a statement. “The mandatory convertible preference share is a great way to fund Wellington’s growth goals and ensure the company can more fully explore new markets and product ideas.”

Wellington Drive will seek shareholder approval at the May annual meeting to let SuperLife take up the offer, which could lift its stake in the company above the 20 percent takeover threshold.

The company held cash and equivalents of $2.98 million as at Dec. 31 after an annual net cash outflow of $2.45 million, and had its accounts tagged by auditor PwC, who said Wellington Drive may need additional funding to keep operating as a going concern.

Last year it raised $4.5 million through an institutional placement and share purchase plan.

Wellington Drive narrowed its annual loss to $3.77 million in 2013 on sales of $27.4 million, missing its target revenue of between $30 million and $33 million.

In January the company dropped its goal of breaking even on an earnings before interest, tax, depreciation and amortisation basis in the 2014 financial year, and will instead target revenue of between $30 million and $35 million. It forecasts a 2014 EBITDA loss of less than $2 million and a net loss below $2.7 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news