Wynyard Group capital raising?

[Harvey Specter]

......Sam M. must be feeling a little sick this morning? (along with many others, moi included)

He topped up above $2 didn't he?

[trader_jackson]

Man anyone who did get out at a $1 really would have been doing pretty well...

Management have truly provided the market with an absolute shock... both rights wise and results wise... and the capital raising isn't underwritten? Well, for a growth company like WYN this is scary times... they are quite literally out of cash and have no guarantee (that a underwritten rights issue provides) of getting sufficient cash required.

Reminds me of the time PEB did a rights issue and how 'everyone' smashed PEB then... but at least it was underwritten and they still had cash anyway for a year before the raising!

I agree with several others on here, management have alot to answer for.

[blackcap]

The biggest concern now for WYN is that the share price drifts to under 85 cents and the rights do not get taken up. What do they do then? Either go to insolvency once the cash runs out, or have to do another rights issue at say 20 cents as Balance suggested this morning. I do not see banks coming to the party in a hurry?

[sb9]

The question I've, is it really worth 85c taking into account their performance/results which was surely way below par??? I would stay far away until I see some concrete tunrnaround.

As for Mr Morgan, he has few spare millions floating around don't think this will hurt him much. Plus he's made plenty on Xero not to mention trade me.

[goldfish]

Even if they do raise 30 mill won't they run out again in September? What then?
Huge issues going forward.

[Bilbo]

Even if they do raise 30 mill won't they run out again in September? What then?
Huge issues going forward.

No problem, they have it all under control - “We’re bringing forward profitability by focusing on key markets and initiatives. By holding head count, shifting our product development focus and executing other efficiencies we believe this capital raise will be sufficient to manage our working capital while sustaining solid growth,” said Richardson.

One must ask the question if it is so easy to do this why didn't they do it before the cash crisis?

[warthog]

Classic double-down, and in the context of recent flotation and previous capital-raisings.

"holding head count"? Does this put a brake on rapid growth, or were they going silly with their hiring since flotation, thinking they were another XRO?

Good luck WYN holders. You will need it!

disc. not a holder.

[ratkin]

If they cant be trusted to run their own company properly , how could they be trusted with National security?

[warthog]

If they cant be trusted to run their own company properly , how could they be trusted with National security?

You know something's up when Ratkin and the Hog agree on something.

[mayday]

NBR is scheduled to talk to Wynyard CEO Craig Richardson this afternoon. We will be asking him about the capital raising programme, but if you have any particular questions you can post them here.

http://www.nbr.co.nz/article/wynyard-announces-rights-issue-th-185266

comments#7, hope it is not too late to post now