Enprise to raise NZ$1.743m amid MYOB dispute

Enprise Group Limited intends to raise up to NZ$1.743 million in capital through a pro-rata 1 for 5 renounceable rights issue.

The offer is for fully paid ordinary shares at a price of NZD 0.50 per share.

Enprise is currently subject to an inquiry by NZ RegCo regarding the timing of announcements related to the MYOB dispute.

The dispute involves MYOB's attempt to retrospectively reduce the margins received by Kilimanjaro on sales of MYOB Exo software.

Kilimanjaro has initiated legal action against MYOB and has been granted an interlocutory injunction in Australia, allowing them to retain the MYOB Exo margin.

However, MYOB has not given the same undertakings for the New Zealand entity.

The case raises questions about the Business Partner Agreement and MYOB's power to alter its terms.

The full trial is expected to be held in April 2024.

Enprise remains confident in Kilimanjaro's legal position but cannot guarantee success.