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Snakk Media doubles share price on listing debut

Published: 9:37AM Wednesday March 06, 2013 Source: ONE News / BusinessDesk

Snakk Media, the brainchild of Hyperfactory co-founder Derek Handley, has almost doubled its share price upon listing on the stock exchange's small-cap NZAX bourse today.

The stock traded at 12 cents, almost twice the 6.5 cents it listed at, in a compliance listing on the market - meaning that no funds were raised.

The first local listing of the year faced a small glitch with a stock exchange systems error showing the stock on the main board rather than the alternative market and the NZX had to clarify Snakk was listed on the small-cap bourse.

The company plans to raise new capital through a share purchase plan sometime between April and June, it said in a statement.

Snakk aims to extend its reach in the Australian market this year, where mobile advertising is estimated to grow to A$177 million by 2017.

"This multi-screened, multi-channelled world is fragmenting audiences and disrupting traditional advertising models, providing tremendous opportunities for Snakk," Handley said.

As part of the listing, Snakk appointed Jucy rentals co-founder Tim Alpe and Telecom general manager of market strategy Michelle Kong as directors, joining Handley on the Snakk board.

Ex-Xero chairman Philip Norman and Sean Joyce, who sits on the board of Snakk shareholder SeaDragon, resigned as Snakk directors earlier this year, according to Companies Office filings.

Snakk posted a 48% gain in sales to $1.22 million in the six months ended September 30.

The company made a net loss of $610,000 in the year ended March 31 last year on sales of $1.99 million.

Right place

Handley told TV ONE's Breakfast this morning that he thinks Snakk will be a "fantastic" addition to the stock exchange.

"I'm really interested in continuing to invest in this space and Snakk is a business that's super exciting, it started in New Zealand and I think it's going to be a really fantastic addition to the New Zealand stock exchange," he said.

Snakk is Handley's second foray into the mobile space. His first venture, mobile marketing company The Hyperfactory was brought by US-based Meredith Corp in 2010 for an amount believed to be over US$20 million.

Handley added that he has high hopes that Snakk will follow in the footsteps of NZX darling, online accounting firm Xero.

"I'm extremely passionate about entrepreneurship in New Zealand and building tech companies and media companies in this country, and I've backed a lot of them and sit on the boards of some of them.

"That market is basically starting from zero, and exploding to multi billions of dollars, and as long as Snalkk is in the right place it could be the next Xero or Diligent on the stock exchange, and that's really what this is about," said Handley.

Handley also told Breakfast about his work with Virgin Group founder Richard Branson.

"I met Richard through purchasing a ticket on Virgin Galactic a few years ago after I sold The Hyperfactory.

"He was looking at different initiatives to set up, and one of them was the B Team, so I agreed to help him get it off the ground."

Handley, who is chief executive of The B Team, said that the initiative is still in pre-launch but aims to become a collected of global leaders "who champion business models for this century that shift the gains towards people and the planet".

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