WANdisco has successfully completed a $30m (£23.7m) fundraise as it attempts to recover from scandal and resume trading on AIM.
The Sheffield-based data company will issue 47.5m new shares, representing 70 per cent of the company’s capital prior to the fundraise. The proceeds will provide working and growth capital to the firm.
The firm added that it consulted with and received “strong support” from many of its largest shareholders prior to the fundraise.
Global Frontier Investments subscribed for 4.2m shares while Davis Capital Partners subscribed for 5.5m shares. Both were existing shareholders in the company.
Retail investors were unable to participate in the fundraise due to regulatory restrictions and a limited timeframe.
London-listed WANdisco was forced to write off over $115m in sales bookings after uncovering “potentially fraudulent irregularities” on its books in March. An independent investigation linked the suspected fraud to one senior employee.
Its shares were suspended and it warned it only had enough capital to last until around mid-July.
Since then the firm has been considering a range of funding options to recapitalise the business and return it to trading on AIM.
It has already slashed its headcount by 30 per cent earlier this month and reduced its annual cost base by some $16m.
WANdisco was a feted data outfit and had been regarded as a UK tech success story prior to the revelation.