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


Wellington Drive to raise $5 million to fund growth

Wellington Drive to raise $5 million to fund its growth strategy

The Board of Wellington Drive Technologies is pleased to announce that the Company will raise $5 million by way of a pro rata rights issue to all shareholders of non-voting Mandatory Convertible Preference Shares (MCPS). SuperLife Limited (a major shareholder in the Company) and other institutional shareholders have committed to take up their entitlements, and SuperLife has agreed to fully underwrite the balance of the issue.

The capital raised will allow Wellington to deliver on its regional expansion, customer growth, and new product development plans supporting its growth strategy.

The key features of the offer include:

§ Raising approximately $5 million by way of a renounceable pro rata one for five (1:5) rights issue to all shareholders at 20 cents;

§ The MCPS have a term of three years and are mandatorily convertible at that time;

§ The MCPS carry a coupon of 5% per annum, payable 6 monthly in arrears;

§ At the end of the three year term, the MCPS will convert to ordinary shares on the following basis:

- If the Company’s listed share price at the time is greater than 24 cents the conversion will be 1:1

- If the Company's listed share price at the time is less than or equal to 24 cents then the conversion ratio for each MCPS will be: $0.20/(0.80 x the then share price) to 1 MCPS.

Issuance of the Company’s prospectus for the rights issue is expected in early April.

The Company will seek shareholder approval at the Annual General Meeting to be held in May 2014 for SuperLife to be issued MCPS pursuant to its underwriting commitment where this may increase its shareholding above the 20% threshold on mandatory conversion.

Greg Allen, Wellington’s CEO commented: "Over the last two and half years we have taken our gross margins from 5% to 19% and are forecasting further margin improvement in 2014. Our operating processes are delivering repeatable and sustainable working capital performance, we are winning new customers and we have a high capability, low cost supply chain being implemented with our strategic partner East West. We believe we now have a stable platform on which to win further new customers and deliver growth. 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."

SuperLife commented in providing this underwrite commitment: "We are satisfied with the Company’s progress in its turnaround efforts over the last 2 years and believe that now is the time to support its renewed growth plans. We believe that the Wellington team are laying the foundation for both shareholder value and building a strong customer proposition. We were pleased to have the opportunity to provide funding that is targeted at its growth strategy.”

Wellington Chairman Tony Nowell said: "We are grateful to SuperLife for underwriting our growth focused capital programme and encouraged that other shareholders have also seen the benefits of this approach and are participating alongside SuperLife. Our plans in 2014 include the launch of our new Smart Controller, a new advanced Smart Motor and we continue to add customers to our portfolio. This new capital will strengthen our ability to execute those plans."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news