Snakk Media, the latest brainchild of Hyperfactory co-founder Derek Handley, has raised $6.5 million from an over-subscribed share purchase plan and private placement, which it will use both to fund its expansion and potentially takeover targets.
The Auckland-based company raised about $5.9 million from the share purchase plan and $600,000 in a private placement to eligible investors at 12 cents a share, a 20 per cent discount to the current price. The share purchase plan and placement will increase Snakk's shares on issue by about 26 per cent.
"The new funds allow us to accelerate our plans to explore strategic investments and acquisitions so that we can keep investing in the right areas that will build and scale the business for the long-term," chairman Handley said in a statement. "The response from investors is spectacular and greater than we expected."
Snakk was seeking at least $2 million from the share purchase plan, and received more than $7.5 million from some 1,200 investors. The over-subscription meant applications were scaled back by 15 per cent.
The price was 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.
