Software of Excellence cancels rights issue

SOE chief executive Paul Weatherly said the New Zealand market had been affected as a result of the lows in United States and other sharemarkets since the offer was announced on July 4.

Because of a drop in liquidity, SOE had decided it was unfair to ask shareholders to make a further investment in the company at this time.

The company sought to raise $5.3 million from shareholders to fund expansion into the United States.

"It is not essential that the company raise money in the short term, and equity funding from shareholders will only be revisited once world markets have settled."

Mr Weatherly said that was unlikely to be for at least six months, but the company would cope without the cash injection.

The record date for the one-for-eight renounceable rights issue at $2 a share was scheduled for this Friday and rights trading was due to start on Monday.

SOE holds its annual meeting in Auckland tomorrow.

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