Snakk Media has launched a public equity offer for new and existing shareholders, which aims to raise up to $2.3 million, opening on October 12.
Through the Offer, Snakk is aiming to raise $1.5 million by offering new ordinary shares at $0.045 per share, and will accept over-subscriptions up to an additional $0.8 million.
According to the company, this represents a discount of 8.2 percent to the closing share price for Snakk on October 2 and a 9.9 percent discount to the volume-weighted average share price for Snakk over the last 30 trading days.
“Our operations are maturing rapidly across Australia and New Zealand, and our small team in Singapore is servicing an enormous Southeast Asian population that is over 25 times the size of Australia and New Zealand,” says Mark Ryan, CEO, Snakk Group.
“Research indicates that rising markets like Southeast Asia will become the leading contributors to global ad market growth in 2016 and beyond.
“Part of the capital raised will fund our efforts to find the strongest talent and mobile advertising technologies so we can achieve our regional growth goals over next 12-24 months.”
Ryan says new investors will have until October 30 to participate, with the Shareholder Priority Offer closing three days earlier, on October 27.
Ryan adds that funds raised from the offer will allow the company to recruit key expertise to accelerate growth in new and existing markets, successfully manage the associated setup costs and marketing programmes for Southeast Asia, continue its search for, and investment into innovative and leading mobile advertising technologies, and see the company through to a cash flow positive position on its core operations.
Transition to the NXT
As Snakk enters its next phase of growth, the board believes NXT is a better market for Snakk due to its requirement for issuers to publish transparent Key Operating Milestones and the support received through NXT advisors and third-party research.
Going forward, it is expected that trading of the Shares on the NXT Market will begin November 5, following the allotment of new ordinary shares issued under the Offer, subject to approval from NZX.
“With consistent revenue growth across multiple regions, excellent talent and market-leading technology, we are a much stronger business than when we listed two and a half years ago,” says Peter James, Chair, Snakk.
“During the past year we have continued to grow our team, evolve our technology portfolio and create a culture which is absolutely critical to our success.
“Importantly, we have continued to grow revenue, greatly improved our margins, and in the past nine months we’ve seen a significant decrease in our year-on-year rate of cash usage.
“We’ve demonstrated that we are capable of successfully executing our long-term growth strategy in a fast-moving industry.”