Make-or-break moment for Big Data company aiming to raise £10.3m
BIG DATA company WANdisco is set to raise £10.3m ($15m) through a share placing.
The company has proposed an offer of 6,465,517 new ordinary shares at 160p per share, with some shares being placed by Investec Bank.
WANdisco admitted that it had been loss-making thus far. It said it will use the funds raised to support established activities, maintaining product development.
The company said the cost of operations had been “significantly” reduced and that it was “important to continue to invest in the business in order to stimulate further enterprise adoption of WANdisco’s technology.”
It said if the placing isn’t pulled off, the directors at WANdisco would seek alternate funding, and/or reduce the scale of the company’s operations.
The business reported revenues of £7.80m for the year to 31 December 2015, down from £7.94m the year before.
Losses before tax narrowed, from a loss of £28.3m to £22.0m.
David Richards, chief executive officer of the dually headquartered firm, commented: “The funds committed today enable us to progress our established growth strategy with a strengthened balance sheet. We are delighted that existing holders have continued to support WANdisco alongside new investors in the business.
“With our hybrid cloud offerings and our evolving partnerships with IBM and others, we are targeting the highest-growth segments in Big Data and Cloud Computing. We intend to use these funds to continue building a successful business around our unique and proven data replication product.”
WANdisco is based in Sheffield and San Ramon in California.
