Dubber in $24m capital raise to recoup misused company funds
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The news: Dubber has launched a $24 million capital raise after the enterprise software company sacked CEO Steve McGovern amid an investigation into the misuse of $26.6 million of company funds.
The numbers: Dubber released details of an entitlement offer of one new share for every one share held by eligible shareholders, at an offer price of $0.05 per new share — a 77.3% discount to the stock's last trade — in a bid to raise around $20.92 million.
The company is also seeking approximately $3.14 million through a placement.
Dubber also said that its revenue guidance for FY24 had been reduced to $38.1 million to $41.6 million from $45 million. This reduction was due to the impact of the alleged misappropriation of term deposit funds and a contract dispute.
The context: Dubber's shares have been in a trading halt on the ASX since 1 March, when the securities regulator open an investigation into missing company funds.
McGovern was sacked with immediate effect after close of trading on Tuesday, after the company said both McGovern and a third party trustee were likely involved in the unauthorised use of $26.6 million in missing company funds.
Executive director Peter Pawlowitsch has been appointed to the role of acting CEO until a permanent CEO is appointed.
The sources: ASX announcement, ASX announcement, ASX announcement
