(Alliance News) - WANdisco PLC shares plummeted 96% on Tuesday, after the company's share returned following its five month suspension.
WANdisco shares had been suspended from trading in London since March, after uncovering signs of possible "fraudulent irregularities" on its books, days after announcing it was exploring a potential US listing.
Shares in the Sheffield, England-based data migration platform were down 96% to 50.50 pence each in London on Tuesday morning.
Earlier in July, the company announced plans to raise USD30 million, through the issue of 47.5 million new shares. The shares represent 71% of the company's total prior to the fundraise.
The company intends to use proceeds for general working capital business and to underpin marketing, sales, research, development infrastructure and to enhance business development.
The fundraise followed WANdisco's suspension of trading in its shares in March, after uncovering signs of possible "fraudulent irregularities" on its books.
At the time, WANdisco said the irregularities would "significantly impact" its cash position and lead to "material uncertainty" regarding its overall financial position.
In April, the company said the investigation so far had confirmed that both the purchase orders giving rise to revenue of USD14.9 million and sales bookings of USD115.5 million recorded for 2022 were false.
Accordingly, it said 2022 revenue should have been USD9.7 million and not USD24 million as previously reported. Bookings should have been USD11.4 million, instead of USD127 million.
WANdisco then confirmed that all of the purchase orders associated with the senior sales employee in question are illegitimate. However, all of the other purchase orders are legitimate.
In July, WANdisco reported its 2022 results, prompting the suspension on its shares to be lifted.
In 2022, revenue rose to USD9.7 million, as expected, from USD7.3 million previously. Its pretax loss narrowed to USD29.8 million from USD38.8 million.
By Sophie Rose, Alliance News reporter
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