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Wellington Drive Technologies rights issue closed 40% 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 25 November, was oversubscribed.

Eligible shareholders were entitled to subscribe for 1 new share for every 5 existing shares held at an issue price of 10 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 49.2m shares out of 53.2m available under the Offer. In addition, applications for additional shares in excess of rights (under the oversubscription facility) were received for 24.9m shares. As the applications for additional shares exceeded the shortfall of 4.0m 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, will be allotted on 29 November.

Greg Allen, Wellington CEO commented “The Wellington team is delighted with the strong show of support from our shareholders and underwriters and sees this result as an endorsement of the company’s growth strategy. As well as repaying high cost debt, the rights issue proceeds will be used to advance the company’s Connect IoT Ecosystem and EC motor product range and to access new markets.”