Billionaire tech investor loses faith in Dubber’s cloud call-recording software
Tech
Tech
Tech investor Alex Waislitz’s stake in emerging cloud recording software company has fallen to 6 per cent after the billionaire slammed the company’s strategy earlier this month.
Dubber (ASX:DUB) announced a successful $7 million capital raise earlier this month despite the backing from the star-studded investor base of Waislitz’s Thorney Technologies (ASX:TEK).
In his most recent chairman’s note, Waislitz called out the cloud call-recording software which had previously said it would not need extra capital.
“Despite having a voice call recording product and a market opportunity with great potential, we believe the company is yet to demonstrate an ability to execute its strategy, improve its governance and maintain an effective communications approach to shareholders,” he said.
“While DUB has engaged with a number of global telecommunications companies, the company has not yet managed to achieve its stated revenue targets.
“At the same time, we are concerned that it appears to be burning cash at an alarming rate.”
A lack of participation in the raise has seen TEK’s stake go from 7.41 percent to 6.09 per cent.
Dubber said the funds raised would be used to expand their operations into the US and Europe but Waislitz was more concerned about it’s organisational structure.
“We have made consistent efforts to engage with DUB and have strongly recommended significant changes to their board to better position the company,” he said.
“To date progress has been less than satisfactory. For example, one newly appointed director resigned after only a few months and the other has a close relationship with the existing CEO.
“In our view there is a clear and urgent need for further changes in DUB’s leadership if the company is to achieve its potential.”
Shares in DUB closed at 34c on Monday and have traded between 15c and 64c in the past 12 months.