Server replication specialist WANdisco (WAND:AIM) has managed to pull off another cash call from increasingly desperate investors. This comes as no surprise. As we explained in a detailed article in Shares last month (read here), the firm's bank account was on its uppers so it is clearly in the interests of major shareholders (including Oppenheimer Funds and Schroders) to not let the business collapse given the huge funds already ploughed into the venture.

But Ian Spence, founder and chief analyst at IT consultancy boutique Megabuyte, makes another, valid point. 'What is perhaps more striking is that investors were not put off supporting the placing by the fact that the highly respected CFO is not going to stick around to see what happens.'

WAND

The CFO in question is Paul Harrison, a highly respected City bigwig who was previously running the books at accounting FTSE 100 Sage. Apparently, he's been made an offer he couldn't refuse, although speculation it came from Corleone family remains unconfirmed.

So the shares jumped, partly because of the placing price. Pitched at 160p per share, the $15 million raised was done so at a premium to the 155p close on Thursday, although the stock has been in freefall for six weeks.

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So when is the next fund raise? Funnily enough, about a year from now based on the available evidence. This is a hugely cash consuming business and without a miracle on revenue growth, it looks like these new funds will run out about the same time as its bank facility with HSBC, in June 2017. So there's a year for shareholders to fit their tin hats.

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Issue Date: 10 Jun 2016