Wandisco PLC (AIM:WAND) has said it is mulling a number of funding options as it works towards the resumption of trading in its shares as the UK and US software group continues to wrestle with the fallout from financial irregularities at the firm.
The group plans to launch a $30mln fundraise towards the end of June to build balance sheet strength in order “to take advantage of the significant opportunities ahead.”
The company said it will commence a consultative process with investors to assess the potential for the proposals “balancing all the different priorities and risks.”
As of April 30, WANDisco said, it had a net cash balance of $8.1mln with no debt facilities and believes this provides the company with sufficient working capital until the middle of July 2023.
The fundraising will form part of the group’s turnaround plan alongside cost reductions and working capital improvements.
“WANdisco's business growth needs to be underpinned by a resilient balance sheet and the proposed fundraise will enable it to build balance sheet strength to take advantage of the significant opportunities available to it,” the company said in a statement.
The group still faces a Financial Conduct Authority probe into its accounting practices after an internal examination uncovered over $115mln in unaccounted-for bookings, leading to the stepping down of chief executive David Roberts and finance boss Erik Miller.
Any resumption of trading in the group’s shares is unlikely until after the fundraising.