Wellington Drive gets its $8.4mln

Wellington Drive gets its $8.4mln

Feb. 3 (BusinessDesk) – Troubled energy efficient refrigeration and ventilation motor innovator Wellington Drive Technologies Ltd. has raised $8.4 million in fresh capital, with assistance from over-subscription by key shareholders.

The deeply discounted one for one renounceable rights issue closed yesterday fully subscribed, “including by way of shareholders applying for additional shares under the offer,” the company announced in a statement to the NZX today.

No immediate details were available of which shareholders had over-subscribed or to what extent. The new shares will be issued tomorrow.

Shares in the NZX-listed company rose 16.7% in heavy trading of more than 2.1 million shares today, to trade at 2 cents a share.

WDT was forced back to the well in November last year, two months after raising $7.7 million in a share purchase plan.

The North Shore-based company has struggled to significantly cut inventory levels after a major customer unexpectedly reduced fourth-quarter orders.

Component shortages and short notice from customers put pressure on gross margins, which were “well below expectations” and the latest capital-raising was “regrettable”, chairman Tony Nowell said in a letter to shareholders prefacing the rights issue prospectus.

The company posted a net loss of $5.9 million for the six months to June 30, compared to a net loss of $9.9 million in the same period previously.

The rights issue was offered at 1.25 cents per share - an 86% discount on the 7.5 cents price the stock was trading at before the rights issue announcement in November.

(BusinessDesk)

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