Snakk Media, a mobile advertising company founded by tech entrepreneur Derek Handley, has been tipped into voluntary administration.
Rahul Goyal and Scott Langdon of KordaMentha have been named joint administrators according to a notice on the NXT, where the company's shares traded before they were suspended last week.
Snakk first listed on the NZX in March 2013 with Handley, who was chairman, owning 22.6 per cent of the company.
Handley stepped down from the board in 2015 and the latest annual report does not list him as among the company's top 20 shareholders.
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The company, according to Milford Asset Management's executive director Brian Gaynor, failed to meet expectations.
It now has a market value of less than $1m.
At the end of March, Snakk had $1.1m cash but funding working capital has placed significant restraints on the company's operation.
Snakk's share price last traded at 5.5c a share (valuing it at $965,600) having dropped 39 per cent in the past year. The company compliance listed on the NZAX in March 2013 at 6.5c a share and hit a low of 3.5c in October.
Handley was about to be announced as the country's first chief technology officer in August when a scandal erupted over the recruitment process and communication between Handley and former Communications Minister Clare Curran.