Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Lateral Corp jumps 75% on debut in thinly traded compliance

Lateral Corp jumps 75% on debut in thinly traded compliance listing

By Paul McBeth

Aug. 18 (BusinessDesk) - Shares of mobile payments company Lateral Corp jumped 75 percent in a thinly traded debut on the NZX's small-cap Alternative Market, ahead of a planned private placement in coming months.

The stock first traded at 35 cents, before settling back to 20 cents, with 21,000 of the 20.7 million shares changing hands, according to Reuters data. Lateral Corp joined the market at 20 cents in a compliance listing, valuing the company at $4.15 million. Chief executive Roger Grice told BusinessDesk the company sought the listing to provide greater flexibility to raise funds as it looks to build markets in Australia, the US, the UK and Canada, which are at the forefront of monetising mobile payments directly to a user's phone bill.

"We see this as a business that will grow quickly and move to profitability as well," he said, without giving a time frame. "A great deal of investment has been put into the platform."

The company plans to raise about $1.5 million in the coming six months from private investors, followed by a share purchase plan, from which it aims to raise a total of $2.625 million, according to its disclosure document lodged with the NZX.

Those funds will be used in marketing drives in overseas markets, which Lateral Corp uses to acquire customers with its partners and affiliates.

Grice said traditional telecommunications companies have been struggling to compete with customers demanding more and cheaper services and using over-the-top services, such as Facebook and Google. Lateral Corp's products tries to offset that by letting customers charge purchases to their phone bill rather than a credit card.

"We're very high margin - we're building products and services that fit that payments flow," Grice said.

The company currently derives about 60 percent of revenue from New Zealand, though Grice expects the majority to come from overseas markets in future.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news