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Wellington Drive Technologies rights issue 43% oversubscribed

Wellington Drive Technologies, a leading provider of Internet of Things (IoT) solutions and energy efficient motors to the retail food and beverage industry, is pleased to advise that its pro rata renounceable rights issue of new ordinary shares, which closed on 16 July 2020, was oversubscribed.

Eligible shareholders were entitled to subscribe for 1 new share for every 3 existing shares held at an issue price of 5 cents per share, and also to apply for additional shares under a shortfall facility. The result of the acceptances is summarised as follows.

Acceptances of rights were received for 86.5m shares out of 108m available under the Offer. In addition, applications for additional shares in excess of rights (under the oversubscription facility) were received for 68.2m shares. As the applications for additional shares exceeded the shortfall by 46.7m shares, there will be a scaling which will be completed in accordance with the process set out in the Offer Document. The shares to be issued, including additional shares, are expected to be allotted by 22 July.

John McMahon, Wellington Chairman commented “The Wellington team thanks shareholders for their strong show of support. The funds raised will assist in effectively managing through the COVID-19 situation and will help ensure the Company comes out of the other side in a strong position. Wellington is committed to resuming execution of its prior growth plans as conditions progressively normalise for its customers.”