WANdisco PLC (GB:WAND) shares collapsed over 90% yesterday after trading resumed following a four-month halt. WANdisco shares were suspended from trading on the London Stock Exchange in March, prompted by the discovery of possible “fraudulent irregularities” on its books, which included inflated sales figures.
On Tuesday, the company started trading again after the release of its delayed results and the successful completion of a $30 million fundraise in July. However, the shares experienced a sharp decline of 96%, falling from 1,310p to 49.08p.
WANdisco is a technology company that provides data solutions to enterprises. The company’s LiveData platform is quite popular and is revolutionizing data infrastructure with its innovative technology.
The Backdrop
In July 2023, the company raised $30 million through equity at £0.50 per share. The company secured the money to prevent depletion of working capital and to support the company’s turnaround strategy. It launched a “deep transformation recovery program,” focusing on reducing expenses and strengthening its trade operations. WANdisco’s turnaround strategy is built upon its unique technology, which aligns well with expanding market demand for moving data to the cloud.
After completing its fundraising, it submitted an application for the new shares to be listed and traded on AIM.
The company also published its 2022 earnings in July, which were previously delayed. It reported disappointing numbers, with a net loss of $29.7 million against a sale of $9.7 million.
Ending Thoughts
WANdisco’s stock has been on a roller coaster ride and is finally back on the AIM market. After suspension and restructuring, the company was striving to have its shares back in trading and recover investor confidence. It did receive full support from its shareholders, who approved the fundraising.
Research and advisory firm TechMarketView commented on the shareholders’ support as a “show of confidence worthy of an autocratic regime.” He also compared the shares current condition to “casino chips.”
