Join our daily newsletter At The Bell to receive exclusive market insights
- Software company Wooboard Technologies (WOO) has received firm commitments to raise $4 million through a capital raise
- Clients currently trialling Wooboard’s employee experience platform have raised issue with the “Going Concern” note on the company’s recently audited accounts
- This capital raise could improve the company’s balance sheet, remove the “Going Concern” note and allay trial client fears
- Proceeds raised will go towards software development, enterprise customer sales support, servicing, and working capital purposes
- Wooboard Technologies is up 25 per cent and trading at 0.5 cents per share
Software company Wooboard Technologies (WOO) has received firm commitments to raise $4 million through a capital raise.
In the last December quarter, several multinational corporations signed up to trial Wooboard’s employee engagement platform. These include companies like the Walt Disney Corporation, Lululemon, Deliveroo, and the U.S. Department of Agriculture.
While this is good news for the company, some concerns have arisen while large trial clients have been conducting their due diligence processes.
According to the company, some of the trial clients have raised issue with the “Going Concern” note which was placed on the company’s recently audited accounts.
Wooboard’s decision to raise $4 million from institutional and sophisticated investors investors could significantly improve the company’s balance sheet, and, in doing so, remove the “Going Concern” note from its accounts, allaying trial client fears.
The company has appointed Clee Capital to conduct the capital raise, which will take place in two tranches. Through the capital raise, Wooboard will issue around 1.33 billion fully paid ordinary shares at an issue price of 0.3 cents per share.
In the first tranche, the company will issue 605,540,681 shares, to raise $1,816,6222. In the second tranche, Wooboard will issue the remaining 727,792,666 shares to raise $2,183,378.
Proceeds from the capital raise will fund software development, enterprise customer sales support, servicing and working capital for the Wooboard Platform.
Wooboard Technologies is up 25 per cent, trading at 0.5 cents per share at 1:59 pm AEDT.
