Dubber receives $5m lifeline from Thorney Investment Group
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The news: Embattled ASX-listed software company, Dubber, has secured bridging finance from Alex Waislitz’ Thorney Investment Group, after the tech firm revealed it was missing $26.6 million in funds.
The numbers: The $5 million secured loan from Tiga Trading Pty Ltd, a company associated with Thorney Investment Group, will make $1.5 million immediately available with the remainder conditionally available upon the completion of an underwriting agreement for capital raising.
The context: Valued at over $1.2 billion in September 2021, Dubber was valued at under $90 million before trading was halted in early March. Following the trading halt, the AI-powered call recording company announced that it had become aware of "inconsistencies" relating to funds held on its behalf by a third party trustee.
After a preliminary investigation, the firm said: "[We] have uncovered that funds, purported to have been held in a term deposit account, may have been applied for other purposes and are not currently available to the Company."
Of the $30 million missing funds, just $3.4 million has been recovered, leaving $26.6 million unaccounted for. Dubber said it had referred the matter to ASIC and suspended its managing director and CEO "with immediate effect" as it continues its investigation.
Waislitz has been increasing his stake in Dubber since prior to Christmas, and his Tiga Trading arm ranks as the company’s largest shareholder.
Dubber’s latest quarterly earnings showed it had just $30 million cash on hand and a burn rate of more than $4 million a quarter.
What they said: In the ASX release announcing the $5 million injection, Waislitz, executive chairman of Thorney Investment Group said: “Unquestionably we were shocked by Dubber’s recent announcement. Notwithstanding, Thorney continues to believe Dubber has sound prospects having built a substantial global client base […] We are supporting the company’s interim funding requirements through this bridging loan facility.”
The sources: ASC announcement, Capital Brief
