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."

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news