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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news