WDT - Wellington Drive Technologies

[Footsie]

As many have said on here.... the time to buy WDT is the last cap raising before b/even

They seem to be getting better at managing cash.

so the question is Liz and Kiwi..... Q ) Is this the cap raising to buy into?

For footsie, I think the answer is yes as the odds are now sufficiently in favour of it being the last one. (say 75%)

IF the odds were 99% then obviously the price would be much higher

[Lizard]

The issue price will be a 15% discount to the average closing NZX share price for Wellington shares for the 5 trading days ending on 15 September.

Looks like the issue price could be quite easy to push around - though there is probably only enough incentive to do so if the same price is used to allocated shares to the larger investor who is supposedly interested...

from the half year report

Following completion of the SPP, Wellington will look to place some or all of the shares not taken up by shareholders with institutional and professional investors, (which may include the investor that originally approached Wellington) although no arrangements or commitments have been entered into at this time.

[sharer]

To assist any folks stressed about SPP dates etc, WDT announcement today:

"WDT: Further details on Wellington Share Purchase Plan The key terms and dates of Wellington's proposed Share Purchase Plan - as announced in the Company's interim results of 20 August - are set out below: 30 August 2010 Record Date 31 August 2010 Opening Date/documents sent to shareholders 15 September 2010 Issue Price determined. 16 September 2010 Closing Date 16 September 2010 Price Announcement Date By 23 September 2010 Shares allotted. The issue price will be a 15% discount to the average closing NZX share price for Wellington shares for the 5 trading days ending on 15 September. Each shareholder with a New Zealand address on the Company's register at 5.00 pm on 30 August will be entitled to apply for a maximum of $10,000 worth of shares. The full Terms and Conditions of the Share Purchase Plan will be sent to eligible shareholders on or around 31 August 2010."

[kiwi_on_OE]

2500 shareholders in Feb 2010, assume similar now. At $10k each that implies they could raise $25m. That's half the current mkt value! There wasn't that much interest from shareholders last time around, so can't imagine there will be a full take up this time either. The wording above from WDT is 'place some or all of the shares not taken up'. It will be interesting to see the shareholder uptake and the placement numbers. Maybe they'll be happy with another $10m in total?

[Voltaire]

Not an impressive track record on the road to profitability for this company and I'm no fan of the board. I imagine that given the woeful takeup by shareholders at the last capital raising the board's strategy this time will be to let the share price fall as low as possible - thereby increasing the pressure on existing holders to buy in in order to avoid dilution. I hope I'm wrong.

Disc. Hold WDT

[Jaa]

So decision time on the SPP....

Date Closing Price
9-Sep 0.085
10-Sep 0.084
13-Sep 0.081
14-Sep
15-Sep

Avg. Closing Price: 0.083333333
Discount: -15%
Issue Price: 0.070833333

Application Amount: $10,000
No. of Shares: 141,176.47

Who is in?

[Raven]

I'm in. Just posted in the cheque today. It will be interesting to see the level of subscription and share dilution. I don't quite understand the math at the moment, the share offer potentially dilutes the share price by about half if all the shares are taken up or placed and yet the discount is 15%. I'm going to be a little annoyed if share price is diluted by more than 15% and it would have been wiser to buy shares after the issue. Seems like a level of uncertainty that shouldn't really exist for shareholders when raising capital. There are enough unknowns already. Having said that I think they have a good product and they seem to be heading in the right direction. When they get there is another story.

[Anna Naum]

So decision time on the SPP....

Date Closing Price
9-Sep 0.085
10-Sep 0.084
13-Sep 0.081
14-Sep
15-Sep

Avg. Closing Price: 0.083333333
Discount: -15%
Issue Price: 0.070833333

Application Amount: $10,000
No. of Shares: 141,176.47

Who is in?

I am in but think your calc is slightly wrong. I thought it was VWAP over 5 trading days rather than the average of the closing prices.

[Jaa]

I am in but think your calc is slightly wrong. I thought it was VWAP over 5 trading days rather than the average of the closing prices.

No it is the Average Closing Price for the 5 days, VWAP is what it should have been as for most other SPPs.

From the SPP Terms and Conditions:

"Issue Price

The price at which the Shares will be issued pursuant to the SPP, being the lesser of:

• a 15% discount to the Average Closing Price; and
• the lowest price paid by investors in a private placement (if the offer under this SPP is made at the same time as, or within 30 days after, a private placement)."

So far I haven't seen evidence of it being manipulated but would be very easy to do. Even I and my 5500 shares could do it! Makes you wonder about their advisers a bit doesn't it?

[Anna Naum]

No that is what is SHOULD have been as for most other SPPs.

From the SPP Terms and Conditions:

"Issue Price

The price at which the Shares will be issued pursuant to the SPP, being the lesser of:

•a 15% discount to the Average Closing Price; and
•
the lowest price paid by investors in a private placement (if the offer under this SPP is made at the same time as, or within 30 days after, a private placement)."

I could have

Thanks Jaa