Software firm welcomes high-profile investment
Trade Me founder Sam Morgan's further investment in listed Christchurch crime analytics software firm Wynyard Group is a "great endorsement" for the company.
Morgan's Jasmine Investment Holdings No. 4 Ltd bought 250,000 shares on market this week, taking his total stake in Wynyard to 5.04 per cent of the firm, according to an NZX notice.
Hamilton Hindin Greene director Grant Williamson said the shares were bought at $1.90 a share on Wednesday for a total of $475,000.
Williamson said this was good news for Wynyard.
"It's a vote of confidence for the company . . . [Morgan] has a very good track record of picking winners in the hi-tech market."
Morgan had supporters who would probably follow him on the stock, he said.
"But of course in the big scheme of things it's only a small amount of his overall wealth so that has to be put into context."
The stock had been over $3 only a few months ago, and had lost a third of its value over the last six months, he said.
"[Morgan] obviously feels like at the current level it is good buying."
Wynyard Group managing director Craig Richardson said Morgan had been an "enthusiastic supporter" of the company since day one.
"He understands technology business . . . and what we're trying to build . . . It's great to have him as a shareholder of the company."
Richardson doubted Morgan would want to sit on the company's board, as he had shown support for the company's management team before.
Morgan's stake in Wynyard was a "great endorsement" for the company, he said.
The company listed on the NZX in July last year, issuing shares to the public at $1.15 each.
Morgan participated in the $65 million initial public offer, and was recorded as holding 2.96 per cent in February, according to the company's 2013 annual report.