Snakk Media intends to raise $2 million through a proposed capital raising offer expected within the next month, which will be available to all New Zealand investors with a priority allocation available to existing shareholders.
“Over the past nine months the operational performance across key areas of the business has significantly improved,” says Mark Ryan, CEO, Snakk Group.
“Our cash-flow is better than expected, our gross margins have continued to rise, and our cash usage has significantly decreased. All of this puts us in a better position to achieve our goals with less funding.”
Ryan says the proceeds of the offer will provide Snakk with additional working capital which will be used to assist it to achieve its strategic goals.
In particular, Snakk intends to apply the proceeds to accelerate its recruitment in sales, marketing and technology staff, designed to accelerate growth in existing markets.
Also, the company aims to expand further into new markets (especially in Southeast Asia) and strengthen its market presence in Australia and New Zealand; and to fund further investment into key technology partnerships and the development of leading mobile advertising and marketing technologies.
Snakk will announce the terms of the offer once details have been finalised.
Ryan says Snakk is currently working on the migration process that will see the company migrate from the NZX Alternative Market to the NXT Market and mid to early November is currently being targeted for migration.