Motor-maker raises $7.7m in share sale

Wellington Drive Technologies' managing director Ross Green on the production floor of his North Shore business. Photo / Kenny Rodger

Investors have committed $7.7 million, before costs, to listed electric motor-maker Wellington Drive Technologies in its latest round of capital raising.

That included $2 million from regular shareholders - through a share purchase plan - which was followed up with a placement to professional investors that netted the firm $5.6 million.

Company secretary Ron Jackson said 28,772,100 new shares would be issued to regular shareholders at 7.038 cents each on Wednesday, while professional investors would receive a further 80,245,863 shares at the same price.

The company's latest capital raising follows the $8.5 million it raised last September through a placement of shares with Hunter Hall Investment Management.

Wellington's chief executive, Ross Green, said he felt humbled by the continued support the company's shareholders had shown through their positive response to the share purchase plan.

"It's just great to have support from the shareholders at a time like this when we're aiming to grow sales aggressively," he said.

"The support shows that, at the end of the day, [shareholders] understand what we're doing and understand that Wellington is moving in the right direction."

The company says the extra capital raised through the share offer will be used to cover near-term operating losses, and the funding of product launches and increases in orders.

Green said the new finance would also put Wellington in a better position to "forward order" the vital componentry it required to manufacturer its motors.

Wellington Drive Technologies' share price remained level at 8.5c last night.