WANdisco has had to delay completion of its fundraising share placement because it discovered its company registration in the British Crown Dependency of Jersey doesn’t let it issue as many shares as it needs to without further approval.
The company needs $30 million from the share placement, which is now delayed until the end of July if shareholders approve. All of this because its sales leadership failed to detect a rogue senior rep allegedly making out vast fantasy orders during 2022.
The company is registered such that it has an authorized share capital of £10 million divided into 100 million ordinary shares of £0.10 each. The fundraising involved issuing 114,726,069 ordinary shares, 14,725,069 too many. These extra shares would be invalid if the fundraising went ahead without an increase in the authorized share capital.
Jersey company law says such a share increase needs approval by a formal general meeting of the shareholders. So WANdisco will run a formal general meeting on July 24 at 10:30am to seek approval of a resolution to raise the authorized share capital to £30 million divided into 30 million ordinary shares of £0.10 each. It will the amend its formal Jersey company memorandum accordingly. Then the fundraising share placement can go ahead.
The timing for the lifting of its AIM stock market suspension moves back to July 25 at 7:30am, with market admission and share trading starting later that day.
The fundraising is conditional on publication of WANdisco’s 2022 report and accounts, the lifting of the AIM suspension, and the general meeting voting in favor of the share capital increase.
That vote will surely be a formality. Hopefully nothing else will go wrong and WANdisco will get its $30 million to help the company move on.