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

 

Budget Building Battle: Bill English Blames Council On Housing

The Nation: Finance Minister blames Auckland Council for housing shortage, saying it is responsible for land, housing and infrastructure supply in the city, while government provides rental subsidies... More>>

ALSO:

Megiaglommeration: NZME And Fairfax Apply For Authorisation To Merge

The Commerce Commission has received an application from Wilson and Horton Limited (trading as NZME) and Fairfax NZ Limited seeking authorisation to merge their media operations in New Zealand. More>>

ALSO:

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news