Snakk Media to raise up to $2.3M selling shares at discount to fund growth
Oct. 5 (BusinessDesk) - Snakk Media, the mobile advertisement developer, plans to raise up to $2.3 million selling shares at a discount to fund its growth plans and affirmed its intention to move its stock to the fledgling NXT market from the NZAX.
Snakk is offering to raise $1.5 million selling shares at 4.5 cents apiece, and will accept $800,00 of over-subscriptions. The price is an 8.2 percent discount to where the shares closed on Oct. 2. The shares fell 4.1 percent to 4.7 cents today and have declined 49 percent in the past 12 months.
The capital raising will fund staff recruitment, expansion into new markets in southeast Asia and investment in technology partnerships, it said.
The company said it is targeting a lift in gross margin to 55 percent in 2016 and 2017 from 42 percent in 2015 and a "click-through rate" of 0.95 percent in 2016 from 0.9 percent in the year just reported.
Snakk plans to migrate to NZX's NXT market for small-to-medium sized firms, which has a less onerous disclosure regime requiring regular operating metrics rather than the continuous disclosure on the main board. NXT will ultimately replace the decade-old secondary board, the NZ Alternative Index (NZAX), which has languished from a lack of investor interest.