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Investors quick to fund VMob ambition

NZN 30/05/2016 Pattrick Smellie

Australian and New Zealand high net worth investors and institutions have stumped up $3.3 million to help mobile marketing platform VMob pursue offshore expansion, particularly in the US.

The NZX-listed, San Francisco-headquartered company was seeking $3m and accepted over-subscriptions of $312,740 for the issue of 8,953,351 new ordinary shares at 37 cents apiece, down from a proposed 40 cents, "to accommodate a strategic investor", VMob said in a statement.

The announcement came after the market closed on Monday and followed the earlier disclosure of a $6.6m loss in the year to the end of March, from a loss of $4.4m a year earlier.

The company is chasing revenue growth over immediate profitability and the result showed revenue more than doubled, also to $6.6m, from $2.9m in 2015. The shares closed on Monday at 35 cents and have fallen about 15 per cent in the past 12 months.

"The new capital will be used to fund VMob's continued offshore expansion, particularly in the US, and the ongoing development of VMob's technology platform," said chief executive Scott Bradley.

"VMob's directors are delighted that a number of new, high-profile investors will join the share register, recognising the potential of VMob as it expands internationally and continues to improve its operating performance."

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