Snakk Media, the latest brainchild of Hyperfactory co-founder Derek Handley, wants to raise up to $2 million through a share purchase plan near the bottom of an independent adviser report's valuation range.
The Auckland-based company will sell shares at 12 cents apiece, a 20 per cent discount to the average trading price over the past 30 days, and near the lower end of the 10.9 cents to 20.6 cents range attributed to the stock by London-based Edison Investment Research. The research house had difficulty valuing Snakk due to the early stage of its existence, and said removing a 25 per cent bid premium would put the top end of the range at 15.5 cents.
See the capital raising announcement to the NZX here.
"The company is at an early stage of its development and valuation is highly subjective," the Edison report said. "In our view, these methodologies fail to reflect management's ambitions to realise the group's underlying potential."
The Edison report highlights the difficulties analysts have in valuing technology-based companies, a month after cloud-based accounting software firm Xero passed the billion dollar value by market capitalisation before it even turned a profit.
