KEY POINTS:
The $8 million being raised by the text-message company Plus SMS Holdings will be enough to see it through to profitability, says chief executive Christopher Tiensch.
The company is planning to raise the capital through a placement of 80 million new shares at 10c each to Hewon Capital, other investors and senior executives.
"I think that will be our last funding round," Tiensch said. "The company should be break-even after that point and be profitable."
Shareholders will get a revenue forecast for the first time, a business strategy, and details on how the next financial year will pan out at a January meeting to vote on the capital raising plan.
"I think people will see maybe a whole different story than what's kind of happened in the past in terms of delivering real results," Tiensch said.
Plus SMS joined the NZX Alternative Market in July last year through a backdoor listing using the shell of failed retailer, RetailX.
The company plans to develop three revenue streams by enabling global text-message campaigns and competitions using single codes, producing interactive mobile content and by providing connectivity and outsource solutions for mobile data.
Tiensch said the Guernsey-based messaging hub was due to go live at the end of next month, and would be used to transit messages for operators where they did not have roaming agreements or had poor connectivity.
Plus SMS also changed the name of its Guernsey operational subsidiary yesterday to CRE8 and launched a new website.
"Today's shift to a new brand reflects the strategic, ongoing transformation within the company."
The share price of Plus SMS collapsed in September after the company admitted making incorrect statements, chairman Jim Bracknell and founder Garry Donoghue resigned and a Securities Commission inquiry started.
Following the retirement of short-time chairman George Brooks this week, Tiensch has a taken on the dual role of chief executive and chairman.
Brooks felt it was the right time to step down, having seen the company through a difficult period to a more solid position, Tiensch said.
The Shareholders Association has said it is better for governance for such key roles to be kept separate.
But Tiensch said his dual role was a practical and efficient choice and the company would continue to follow best governance practice.
"As the company evolves we'll definitely look at it and say, 'Should we make changes to those roles?', so this is not something that's set in stone for the long term."
Plus SMS share price closed up 0.1c to 19.5c.
