LandMark White taps investors after breach
STAFF at the Carrara office of Gold Coast-founded valuation firm LandMark White face an uncertain future after the company said it needed $3 million to keep going.
LandMark White’s shares were suspended in February after information about 100,000 home-loan customers was posted on the dark web.
Shares were reinstated in May but suspended again in June after another data breach.
The company on Friday announced a four-for-five entitlement offer at 8¢ a share to raise $5.45 million. It said the money was for a restructure (including redundancies), investment in IT systems and working capital for expansion into Western Australia.
LMW said the offer, to be underwritten by Enrizen, must raise $3 million or the company wouldn’t be able to meet its financial obligations.
“LMW’s current financial position is such that, in the event that the minimum raise amount is not raised under the offer, the offer will not proceed and the company will not be able to continue meeting its financial obligations when they fall due,” the company said.
The company has one office on the Gold Coast, at Emerald Lakes, led by Michael Everingham.
It shares space with Taylor Byne, which LMW acquired late last year, and has 12 staff.
James White, the son of LandMark White co-founder Glen White, worked at the Gold Coast office but left for Charter Keck Cramer, although that is understood to have had nothing to do with LMW’s difficulties.
Mr Everingham did not return calls from the Bulletin.
The 8¢-a-share offer is a 56 per cent discount to the company’s last traded share price of 18¢.
The company also announced it would conclude its franchise agreements in Sydney and on the Sunshine Coast.