Wynyard Group has placed itself in voluntary administration, as the software company battles crippling losses and missed revenue forecasts.
Revealed via a statement issued on the New Zealand Stock Exchange, the security focused firm advised shareholders following a difficult period in which the company lost $36.2 million for the six months ended June.
“The Board considered all available options including potentially raising additional capital and drawing on the $10 million loan but concluded that neither raising further equity nor incurring debt was in the best interests of the company, its shareholders or other stakeholders,” the statement said.
“The Board believes this is the right decision under the circumstances, in order to ensure an environment where all options can be fully explored to retain the value in the business.”
As a result of the move, KordaMentha partners, Neale Jackson and Grant Graham, have been appointed as administrators of the company.
“The Board acknowledges the significance of its decision for shareholders, staff and customers; and will work with KordaMentha to support these parties as it moves quickly through this process,” the statement added.