Snakk's CEO departs after first creditors' meeting

Snakk Media chief executive Joel Williams has ceased his employment with the company. Photo / Supplied.

Snakk Media's chief executive Joel Williams has ceased his employment with the company, it advised in a one-sentence statement late Friday.

The Derek Handley-founded mobile advertising company also said that KordaMentha, the voluntary administrators of its most significant asset, the Australia-based subsidiary Snakk Media Pty, held its first creditors' meeting last Thursday. The listed company is the subsidiary's largest creditor.

"The board continues to review the financial position of the company and assess the options for its future," it said.

"It is consulting with key stakeholders and seeking expert advice. This process is being conducted as quickly as possible."

Snakk's board appointed Rahul Goyal and Scott Langdon of KordaMentha as administrators on Dec. 10.

Trading of Snakk shares on NZX's soon-to-be-defunct NXT junior market was halted on Nov. 30 and suspended indefinitely on Dec. 7 after the company failed to lodge its first-half financial statements.

The shares last traded at 5.5 cents on Nov. 27 and have fallen 21.4 percent year-to-date.

The company lost $305,000 in the year ended March, down from a $3.2 million net loss the previous year. Snakk had $1.08 million in cash at March 31.

A research report by Edison published on Nov. 5 which reported Snakk was limping along on convertible loans totalling $89,000 from two directors pending shareholder approval of a capital raising.

"The benefits of the restructuring initiated in full-year 2017 and continuing through full-year 2018 should be more apparent in full-year 2019 as the business runs for a full year on a lower underlying cost base," Edison said.

(BusinessDesk)