WAM Active (ASX:WAA) - Managing Director, Geoff Wilson
Managing Director, Geoff Wilson
Sourced: Wilson Asset Management
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Wilson Asset Management investment fund WAM Active (WAA) has cancelled its latest bout of capital raising
  • The company said heightened market volatility brought about by the Covid-19 coronavirus pandemic is to blame
  • The company announced the share purchase plan and placement in February, pricing shares at $1.086 each
  • Shareholders who have already taken part in the capital raise will have their money returned with no interest
  • WAM Active shares are currently down 7.07 per cent at 92 cents each

Listed investment company WAM Active (WAA) has cancelled its share purchase plan due to the struggling market under siege by the Covid-19 epidemic.

The company announced the share purchase plan in mid-February to boost its investment portfolio. The purchase plan would go in tandem with a share placement and both were to price shares at $1.086 each.

Under the purchase plan, WAM Active would issue a maximum of 13.9 million new shares. This means the plan would have raised just over $15 million.

Importantly, shareholders who took part in the purchase plan would have been entitled to the company’s upcoming fully-franked three-cent dividend due in late April 2020. This effectively shaves another three cents off of the already-discounted purchase plan price.

However, in the face of “heightened market volatility” the Wilson Asset Management investment fund has made the call to scrap the purchase plan entirely. Shareholders who have already subscribed to the plan will have all their money returned to them without interest. Further, they miss out on the extra shares that would have bagged some more cash in the dividend payout.

WAM Active has also cancelled the placement.

When the news was dropped yesterday, shares had a bumpy day as they gained four per cent and lunchtime, then suddenly dipped into the red by two per cent in mid-afternoon trade. Finally, in the last half-hour of trade, shares settled grey and closed at 99 cents each.

Today, however, shares have seen a consistent decline. Currently, WAM Active shares are down 7.07 per cent and worth 92 cents each.

WAA by the numbers
More From The Market Online
The Market Online Video

Income Asset Management posts 29pc jump in assets to $3.5b

Income Asset Management (ASX:IAM) has posted its half-yearly results, logging a 29 per cent growth in…

Income Asset Management Group (ASX:IAM) awarded $160 million mandate for NFP bond holdings

Income Asset Management Group (ASX:IAM) has landed a mandate to provide execution services for $160 million…
The Market Online Video

Income Asset Management (ASX:IAM) cashed up to drive business in FY24

Income Asset Management (ASX:IAM) has posted its third consecutive quarter of positive net operating cash flow…

Income Asset Management (ASX:IAM) announces TGM and AVFS merger

Income Asset Management (ASX:IAM) has announced a merger between privately held TGM and AVFS.