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VMob Announces Successful Capital Raising Round

MEDIA RELEASE

VMob Announces Successful Capital Raising Round

Auckland New Zealand, 17 June 2013 – VMob Group Limited (VML), the specialists in mobile-centric marketing and campaign management technology, today announced that it has secured funding of $1.3 million in a recent private placement of shares. 

The placement, which attracted strong demand from high net worth investors in both New Zealand and Australia, was managed on behalf of the Company by Sydney-based CMB Capital.  Shares issued under the placement rank equally with existing shares and represent 10.95% of the total number of shares on issue post completion of the round.

The new capital will be used to pay off a small amount of debt and accelerate the Company’s business development activities in selected offshore markets where there is well-qualified interest in VMob’s innovative technology platform.

VMob CEO, Scott Bradley, said the Company was delighted with the level of interest the placement received, and, as a result, the Company was now debt free with approximately $1.0 million in the bank, which will be sufficient to sustain its working capital needs for the next 12 months.

“Our pipeline of opportunities has increased significantly over the last six months and is now stronger than it ever has been”, said Bradley.

VMob’s business model includes a mix of revenue where clients pay both upfront licence fees and recurring transaction charges. 

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“The upfront licence fees help reduce the capital requirements of the business and long-term contracts with recurring revenue streams are now our focus,” said Bradley.

VMob’s recurring revenues come from multiple sources including mobile vouchers, mobile advertising, email, SMS, Facebook and Google Ad Words.  

VMob sells its marketing and campaign management platform to "aggregators" who are typically large organisations with large numbers of end users.  Banks, telcos and directory businesses are examples of such "aggregators".  The Company recently secured its first contract for the deployment of the platform at Yellow Pages New Zealand for the menus.co.nz brand.  Earlier in the year, VMob also undertook "proof of concept" projects with telcos in the Philippines and Indonesia and negotiations to turn these into contract relationships continue to be pursued.

VMob also sells its platform to corporate customers seeking "proprietary" implementations.  Retailers, quick service restaurants and service stations are all examples of organisations with existing customer bases that are looking to drive customers into store for repeat purchases, at the same time improving customer engagement and the data analytics about customer behaviour.  The first deployment of a "proprietary" offering of this nature has just been secured with McDonalds Netherlands, a win obtained in collaboration with DDB Tribal, one of the world's largest digital agencies.  VMob has a partnership arrangement with DDB Tribal in Europe, which allows DDB Tribal to take VMob's platform services to many of its global brand clients.

Over the last twelve months, the VMob technology platform has been extensively re-developed in conjunction with Microsoft's Azure development teams in the US and Germany.  This re-development project now enables the platform to process geo-location data for 100 million users in real time.  The Company has, therefore, overcome one of the significant challenges for "big data" marketing platforms and now possesses the capability to scale the business rapidly to meet international demand.  Microsoft has showcased the VMob platform to its clients and at conferences through the Asia Pacific region as an exemplar of what is possible using its Azure technology.

In the coming year, the VMob team is focused on continuing to grow the business in both the Asia Pacific region and in Europe and will do this both directly and in collaboration with its strategic partners.

ENDS

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