- $115 million of revenues completely made up
- CEO/CFO leave with credibility shot
- Shares stay suspended at £13.10
The lights have come up and the party is over for WANdisco (WAND:AIM), the data migration software seller at the centre of a fantasy revenues storm.
Both the founder and chief executive Dave Richards and chief finance officer Erik Miller have gone, even if the company claims their departures are ‘not connected to the findings to date of the independent investigation.’ Hmm.
‘We’re not convinced,’ said Megabuyte analyst Tom Kennedy. ‘Frankly, Miller and Richards’ fate was sealed the moment a formal investigation started, as shareholders may find it difficult to imagine a situation where one single sales employee is able to pull the wool over the CEO and CFO’s eyes on $115 million (roughly 90%) of seemingly fraudulent bookings.’
GOBSMACKING GOVERNANCE FAILURE
If nothing else, the scale of the corporate governance failures is shocking and will be a big blow to investors who have bankrolled WANdisco to the tune of more than £200 million since it listed on the stock market on the promise of bumper profits tomorrow. That tomorrow now looks further off than ever.
The shares remain suspended at £13.10, but they won’t stay there once the trading bar is lifted. Any investor confidence is now shot which will call into question the company’s ability to raise new funding necessary to survive.
Perhaps a white night buyer will rescue the situation but from here, shareholders look highly likely to be wiped out. So much for tomorrow’s sunny uplands.
