Snakk Media almost doubles on NZAX listing debut

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

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.

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)

© Scoop Media