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Wellington Drive Technologies Funding Update


Wellington announces fully supported rights issue to fund continued growth

AUCKLAND, Oct. 25, 2019 /PRNewswire/ -- Wellington Drive Technologies Limited (Wellington), a leading provider of Internet of Things (IoT) solutions and energy efficient motors to the retail food and beverage industry, today announced its intention to raise approximately $5.3m of new capital through a fully supported pro-rata rights issue. This announcement is on the back of strong year-to-date results that demonstrates improving profit performance, plus an expanding array of growth opportunities, including the recently announced new North American IoT project.

Wellington's Capital Committee Chairperson, Gottfried Pausch commented, "With continually improving operating performance and an exciting funnel of growth opportunities the board believes now is the right time to increase the company's growth investment. We appreciate the support of those shareholders that have committed to support this rights issue and we invite other shareholders to also participate. This new capital will let Wellington accelerate its product development and business development capability, so that it can grow revenue consistent with its 2023 growth target and further increase earnings and cash generation".

Funding Details

To ensure Wellington can successfully execute new growth projects, continue to add the necessary skills in sales and IoT engineering and successfully launch new products planned for 2020, Wellington intends to raise approximately $5.3m from a pro-rata rights issue.

The key features of the offer include:

Use of funds:

Governance note

Acting Chairman John McMahon is the sole director and shareholder of Meta Capital Limited. Meta Capital has loaned US$0.6 million to Wellington on arms-length terms and this loan is due for repayment on 31 March 2020. Part of the proceeds of the capital raising will contribute towards repayment of this loan. In addition, Mr McMahon is a director of NZX Limited, the parent company of Smartshares Limited, which is a substantial product holder of Wellington with 27.478% of the issued ordinary shares of Wellington as at 6 June 2018 (being the date of its most recent substantial product holder disclosure). Given these factors, Mr McMahon is deemed to be "interested" in the Offer. Accordingly, he has not participated in discussions or information where a conflict of interest may arise and has been recused from all Wellington Board decisions relating to the Offer. Mr McMahon is not an independent director of Wellington.

About Wellington Drive Technologies:

Wellington is a leading provider of IoT solutions, cloud-based fleet management platforms, energy efficient electronic motors and connected refrigeration control solutions. It serves some of the world's leading food and beverage brands and refrigerator manufacturers and offers proximity-based marketing for Smart Cities to the Australian market. Wellington's services and products improve sales, decrease costs and reduce energy consumption. Headquartered in Auckland with a global reach, Wellington is listed on the New Zealand stock exchange under the ticker symbol NZ:WDT For further information visit www.wdtl.com


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