News: DUB Dubber Corp Announces Dismissal Of Managing Director & CEO Steve McGovern, page-31

Dubber Corporation pulled the trigger on a $24 million cash call on Tuesday morning as it scrambles to plug the hole left by funds that went missing.

Dubber suspended its chief executive Steve McGovern, while ASIC succeeded in obtaining travel restraint orders. Tash Sorensen

The raise includes a $3.1 million placement and a $20.9 million accelerated non-renounceable rights issue on a one-for-one basis.

The offer is priced at 5¢, an eye-watering 77.3 per cent discount to Dubber’s 22¢ last traded price. Stockbroker Morgans has underwritten the deal, while Unified Capital Partners is also involved.

Dubber shares haven’t traded for more than a month, and Street Talk first flagged the impending raise on March 5. However, fund managers have been waiting for Dubber’s auditors to sign off on half-year accounts before entertaining any raising talks.

The company’s chief executive Steve McGovern and Melbourne lawyer Mark Madafferi have been banned from leaving Australia as ASIC investigates how $30 million went missing from a term deposit account, held on behalf of the company by a third-party trustee. About $3.4 million has since been recovered, but investors are yet to learn the fate of the rest.

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On March 15, Alex Waislitz’s Thorney Technologies, which now owns 19.9 per cent of Dubber, agreed to provide a $5 million secured loan as bridge financing.

Dubber is capitalised at $92 million on the ASX. In its quarterly report to December end, it guided to $45 million revenue and $65 million costs (excluding share-based payments, goodwill impairment and FX movements) for the 2024 financial year.

It raised $110 million at $2.95 a share in July 2021, followed by $10 million last year at just 14¢ a share.