Why the Whispir (ASX:WSP) share price is under pressure today

The Whispir Ltd (ASX: WSP) share price is back from its trading halt after raising $45 million from institutional investors…

| More on:
white arrow pointing down

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Whispir Ltd (ASX: WSP) share price has returned from its trading halt and is tumbling lower on Tuesday morning.

At the time of writing, the communications workflow platform provider's shares are down 4% to $3.72.

Why is the Whispir share price tumbling lower?

This morning Whispir announced the successful completion of an institutional placement.

According to the release, the company has raised a total of $45.3 million via a placement to new and existing institutional investors at an offer price of $3.75 per share. This represents a discount of just 3.6% to its last close price.

This placement leaves Whispir with a pro forma cash balance of $54 million.

Why is Whispir raising funds?

The release explains that the proceeds from the placement will be used to accelerate Whispir's growth strategy in its three key markets of Australia and New Zealand (ANZ), Asia, and North America, and capitalise on global digital transformation and automation trends.

It will also strengthen its balance sheet to provide the company with working capital flexibility.

Whispir's CEO, Jeromy Wells, commented: "Since our IPO in June 2019, Whispir has been executing on its growth strategy, increasing ARR, revenues and customers within our mature ANZ business and growing operations in Asia and North America."

"Digitisation tailwinds provide a significant opportunity for us to fast-track our product roadmap, delivering higher-value products to drive platform utilisation and adoption. Funds raised will also enable us to increase our presence within the competitive North American market, where we are targeting underserved SME and SMB organisations."

Share purchase plan

In addition to the institutional placement, Whispir is seeking to raise up to $3 million through a share purchase plan. These shares will be offered to eligible shareholders at the same price of $3.75 per new share.

Though, with the Whispir share price currently trading below this price, demand for its share purchase plan may not be overly strong unless there's an improvement between now and its closing date on 19 March.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Bapcor, Boss Energy, Macquarie, and Novonix shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

Stock market crash concept of young man screaming at laptop on the sofa.
Share Fallers

Guess which ASX 200 stock just crashed 31% on slumping sales

The $1.3 billion ASX 200 stock is getting hammered today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why CBA, Inghams, Praemium, and Strike Energy shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Brightstar, Eagers Automotive, Regis Resources, and Westpac shares are sinking

These shares are starting the week in the red. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why 29Metals, Atlas Arteria, DroneShield, and Yancoal shares are falling today

Let's see why these shares are ending the week in the red.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why 29Metals, CAR Group, DroneShield, and Santana Minerals shares are falling today

These shares are missing out on the good times on Thursday. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Imricor, Imugene, Newmont, and Pepper Money shares are falling today

These shares are having a tough time on hump day. But why?

Read more »