Wynyard extends trading halt, seeks to tap facility for working capital
Wynyard Group is looking into how it can tap a stand-by loan facility agreed in August with major shareholder Skipton Building Society.
Wynyard Group, the intelligence software developer, is looking into how it can tap a stand-by loan facility agreed in August with major shareholder Skipton Building Society, saying it needs the funds for working capital.
Auckland-based Wynyard, which posted a wider first-half loss in August while slashing its full-year guidance, has seen its shares plunge 88% this year before being halted on Monday. The company has revamped its board and restructured into two units while embarking on a cost-control strategy to address its disappointing performance. Today it obtained an extension to the trading halt until the start of trading on October 25.
On August 10, Wynyard said it had secured a $10 million revolving credit facility with major shareholder Skipton, which would help it manage "revenue timing risks."
The one-year facility, secured over the assets of the company, includes arrangement and commitment fees, drawdown fees of 8%, and an annual interest rate of 15% on any amount drawn down. Skipton imposed restrictions on the facility including a test that the board is confident that the company "can enter into transactions sufficient to repay any amount drawn down under the facility" and tied the funds to meeting certain financial covenants.
"Due to Wynyard's current working capital position, the company will need to make an initial partial drawdown on this facility in early November," it said today. "Certain conditions must be met to draw down on this facility. The board is investigating a number of strategic options so that Wynyard can meet these conditions."
(BusinessDesk)
Jonathan Underhill
Thu, 20 Oct 2016
Thu, 20 Oct 2016
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Wynyard extends trading halt, seeks to tap facility for working capital
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