CORRECT: Snakk Media almost doubles on NZAX listing debut

CORRECT: Snakk Media almost doubles on NZAX listing debut, signals share purchase plan in 2Q

(Fixes Phil Norman's relationship with Xero in 7th graph.)

March 6 (BusinessDesk) - Snakk Media, the latest brainchild of Hyperfactory co-founder Derek Handley, almost doubled its share price upon listing on the stock exchange's small-cap NZAX bourse, and signalled plans for a share purchase plan in the second quarter.

The stock traded at 12 cents, almost twice the 6.5 cents it listed at, in a compliance listing on the market, meaning no funds were raised. The first local listing of the year faced a small glitch with a stock exchange systems error showing the stock on the main board rather than the alternative market and the NZX had to clarify Snakk was listed on the small-cap bourse.

The company plans to raise new capital through a share purchase plan sometime between April and June, it said in a statement.

Snakk aims to extend its reach in the Australian market this year, where mobile advertising is estimated to grow to A$177 million by 2017.

"This multi-screened, multi-channelled world is fragmenting audiences and disrupting traditional advertising models, providing tremendous opportunities for Snakk," Handley said.

As part of the listing, Snakk appointed Jucy rentals co-founder Tim Alpe and Telecom general manager of market strategy Michelle Kong as directors, joining Handley on the Snakk board.

Ex-Xero chairman Philip Norman and Sean Joyce, who sits on the board of Snakk shareholder SeaDragon, resigned as Snakk directors earlier this year, according to Companies Office filings.

Snakk posted a 48 percent gain in sales to $1.22 million in the six months ended Sept. 30. The mobile ad company made a net loss of $610,000 in the year ended March 31 last year on sales of $1.99 million.

Mobile device advertising firm The Hyperfactory was sold to US media firm Meredith in 2010.

(BusinessDesk)

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