Company plans capital raise amid severe financial strain and potential shareholder dilution.

WANdisco has issued a warning that it will run out of funds by mid-July unless it secures a rapid $30 million capital raise. The Sheffield-based technology firm intends to seek fresh shareholder investment before the end of June to stabilize its financial position and avert potential collapse.

In March, WANdisco revealed a major discrepancy in its sales and bookings data, raising red flags about the business’s viability. This prompted an immediate suspension of its shares and an internal investigation into suspected fraud led by Chair Ken Lever. In a statement, Lever emphasized the urgency of recapitalization, acknowledging that the crisis stemmed largely from the issues exposed in March. “On completion of the fund raise, I believe that the Company can have a bright future,” he stated.

The planned capital raise involves issuing new shares, which will dilute existing shareholders’ stakes. The firm aims to use the proceeds to bolster its financial stability, rebuild investor confidence, and support its marketing and business development initiatives.

WANdisco’s financial challenges have attracted scrutiny from the UK’s Financial Conduct Authority, which has opened an investigation amid fraud concerns. The company, which had been eyeing a U.S. listing and recently boasted a market cap exceeding $1 billion, experienced a dramatic reversal of fortune after uncovering over $100 million in missing sales. Its former CEO and CFO resigned abruptly during the crisis. Lever expressed confidence in the newly appointed executive team, describing them as “world-class.”