Australian and New Zealand high net worth investors and institutions have stumped up $3.3 million to help mobile marketing platform VMob pursue offshore expansion, particularly in the US.
The NZX-listed, San Francisco-headquartered company was seeking $3 million and accepted over-subscriptions of $312,740 for the issue of 8,953,351 new ordinary shares at 37 cents apiece, down from a proposed 40 cents, "to accommodate a strategic investor," VMob said in a statement.
The announcement came after the market closed yesterday and followed the earlier disclosure of a $6.6 million loss in the 12 months ended March 31, from a loss of $4.4 million a year earlier. The company is chasing revenue growth over immediate profitability and the result showed revenue more than doubled, also to $6.6 million, from $2.9 million in 2015. The shares closed yesterday at 35 cents and have fallen about 15 percent in the past 12 months.
"The new capital will be used to fund VMob's continued offshore expansion, particularly in the US, and the ongoing development of VMob's technology platform," said chief executive Scott Bradley. "VMob's directors are delighted that a number of new, high-profile investors will join the share register, recognising the potential of VMob as it expands internationally and continues to improve its operating performance."
Annualised committed monthly revenue (ACMR) rose 70 percent to $5.4 million. In April, the company affirmed guidance for ACMR of $10 million within six-to-nine months and said it expects to reach that target by the end of September. ACMR soared more than 1,000 percent to $4.8 million in VMob's first half, when it reported a net loss of $3.2 million.