Thursday 20th October 2016 |
Text too small? |
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 percent 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 Oct. 25.
On Aug. 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 percent, and an annual interest rate of 15 percent 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 draw down on this facility in early November," it said today. "Certain conditions must be met in order to draw down on this facility. The board is investigating a number of strategic options so that Wynyard can meet these conditions".
BusinessDesk.co.nz
No comments yet
PaySauce Quarterly Market Update - Dec 2024
CHI - FY24 Results Date and Audio Conference Details
AIA - December 2024 Monthly traffic update
January 15th Morning Report
PF - Details of Interim Results Webcast
Scott Secures NZ$18 million in Global Contracts for Protein
January 14th Morning Report
AFT - NEW YEAR LETTER TO INVESTORS
TruScreen Invited to Present WHO AI Collaboration Meeting
January 13th Morning Report