Dubber launches $25m equity raise to help recover missing funds
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More news: Dubber has launched a $25 million equity raising, in part to support recovery efforts following the alleged unauthorised use of $26.6 million in missing company funds, reported earlier this year.
The equity raising consists of a placement to raise $3.6 million, a conditional placement to raise $7.5 million, and an entitlement offer to raise $13.9 million.
A total of 1.669 billion of new Dubber shares will be issued under the equity raising. All new shares will be issued at a price of 1.5 cents per share, representing a 48.3% discount to the last traded price of 2.9 cents, and a 50% discount to the five-day volume-weighted average price of 3 cents.
Dubber said the proceeds of the placement will be used as working capital to build market awareness, drive sales growth, reduce tax liabilities, and support recovery efforts following the alleged misappropriated funds, which saw former CEO and managing director Steve McGovern fired from the company in April.
Following the equity raising, Dubber will target operating cash flow monthly run rate breakeven in the final month of FY25.
Dubber's new CEO Matthew Bellizia has pre-committed $1.25 million towards the placement.
What they said: "This $25 million equity raising provides Dubber and customers with the confidence that recent growth in the business will continue," Dubber chair Neil Wilson said.
"The funds provide the flexibility in Dubber's balance sheet to accelerate sales momentum and execute a new sales strategy whilst maintaining a disciplined approach to costs and providing customers confidence that Dubber is fully funded to be able to execute on these objectives."
Dubber pauses trading ahead of capital raise announcement
The news: Embattled voice recording tech company Dubber has entered a trading halt on the ASX, pending an announcement about a capital raising program.
The numbers: Dubber closed 3.33% lower on Thursday at 2.9 cents per share, having shed over 80% since January.
The context: The announcement will include details of an underwritten entitlement offer and a two-tranche placement, the company said.
Dubber has requested that the trading halt remains in place until the earlier of the announcement or the start of trading on 15 October.
The company also announced that its chair Neil Wilson and non-executive director Sarah Diamond would retire at its annual general meeting in November.
Dubber also noted that its board had proposed to increase the number of securities offered to its newly appointed chief executive Matthew Bellizia.
Earlier this week, the Melbourne-based company lodged an application with the Supreme Court of Western Australia, claiming that its appointment of Ernst & Young as auditor of the company is valid despite not seeking shareholder approval due to an "administrative oversight".
In August, Dubber looked to be at risk of insolvency as auditors flagged "material uncertainty" in its full-year results and issued a correction to previous years' accounts.
In February the company found that its funds had been allegedly misused by former CEO Steve McGovern and a third party trustee with $26.6 million still unaccounted for.
The sources: ASX announcement, ASX announcement, ASX announcement
