Snakk Reveals Details of May Capital Raising Initiative

Snakk Reveals Details of May Capital Raising Initiative,
Unveils Brisbane Office and Edison Research Report

New research report values stock at up to $0.20c
AUCKLAND, New Zealand, 22 April 2013 –Snakk Media Ltd., (NZAX: SNK) the future-focussed ‘new screen’start-up that announced a record-breaking unaudited third quarter[1] last month, is today announcing the date and terms of its Share Purchase Plan (SPP), as well as the official opening of its new Brisbane office.

The company, which generates revenue every time an advertisement is delivered across its networks on a smartphone or tablet, is offering its shareholders the opportunity to increase their holdings for a fixed price of 12 cents per share. The SPP offer represents an approximate 20% discount to the volume weighted average price of the last 30 days and shareholders will have the exclusive opportunity to buy a maximum of $15,000 worth of ordinary shares in the company up to a total of $2m[2].

This deal is only available to shareholders registered prior to 5pm on 1 May (the Record Date) and will be open from May 6-21.

Snakk is looking to raise capital to fund expansion into new regions, growing the sales team, adding new technology platforms, and exploring strategic investment opportunities.

The first independent research report on the company, by London-based Edison Investment Research Limited, will be released overnight on April 22 New Zealand time. Once released, the report will be available here. Edison outlined a valuation range of up to 20.6c based on Snakk’s current activities and reported historic take-out multiples on sector transactions.

Since announcing the appointment of Mark Ryan as Group CEO earlier this month, Snakk has also welcomed a new sales executive, Charlie Raper, to head its Brisbane office, which officially opens today.

“We are very happy to have Mark on board to take us through this next exciting phase of growth,” says Chairman and company co-founder Derek Handley. “The SPP is a fantastic opportunity for existing shareholders to increase their stake in Snakk at a discount to the average trading price. With a new round of capital raising on the go, increasing revenues and new offices planned, it is essential we have someone of Mark’s calibre leading the management team and implementing the company’s growth strategy.”
Mark joined Snakk a year ago as Executive Director. Prior to this he was he was Chief Operating Officer at Ogilvy Australia, a newly created role at what was then Australia's largest advertising agency.

“Snakk is at the intersection of brands, technology and the new screens in our lives, and the business has an amazing journey ahead of it,” says Mr Ryan. “The reality is that mobile advertising spend is vastly under-represented - as little as one percent of the total digital advertising budget in our key markets - and we're seeing enormous opportunity out there. I couldn't be more enthusiastic about the team we have and the results we're achieving for our clients and shareholders."

All Snakk shareholders on the register as at Record Date (May 1st) will be sent material and application forms to participate in the SPP. These will also be available on the Snakk investor  website,www.snk.co.nz from the Opening Date (6 May).

[1] Unaudited revenues for the October to December 2012 quarter, grew year-on-year from $NZ686,000 to $NZ1.439 million.

[2]The Board of Directors of Snakk Media reserves the right to accept over-subscriptions

ENDS

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