Snakk intends to raise NZ$2.0 million through a proposed capital raising offer, within the next month. The offer will be available to all NZ investors with a priority allocation available to existing shareholders…
Despite improved revenues and substantially reduced operational expenses, Snakk has endured some flak in recent months, culminating in the share price responding adversely to news that founding chairman Derek Handley is to step down. However, Snakk Group CEO Mark Ryan pointed out that the operational performance across key areas of the business has significantly improved. “Our cash-flow is better than expected, our gross margins have continued to rise, and our cash usage has significantly decreased. All of this puts us in a better position to achieve our goals with less funding.”
The proceeds of the capital raising offer will provide Snakk with additional working capital which it says will go towards assist it to achieve strategic goals. The company said it intends to apply the proceeds to recruit sales, marketing and technology staff, expand further into new markets particularly in Southeast Asia while strengthening presence in Australia and New Zealand, and fund investment into key technology partnerships.
Snakk will announce the terms of the offer once details have been finalised. It also said it is working on a migration process to move from the NZX Alternative Market to the NXT Market with a target date of mid to early November.
