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Plexure shares soar after McDonald's deal

NZ Newswire logoNZ Newswire 30/12/2016 Sophie Boot
Image of McDonald's logo © Getty Image of McDonald's logo

Plexure Group, the digital advertising firm formerly known as VMob, has signed an agreement with the biggest McDonald's franchisee in Latin America and the Caribbean, expanding its relationship with the global fast food giant.

The shares soared 33 per cent to 32 cents on Friday, extending Thursday's gain of 26 per cent. The stock sank to a record low 19 cents on Dec. 22, and has dropped 46 per cent this year.

The deal with Arcos Dorados Inc has a contracted starting fee of about $1.1 million of annualised committed monthly revenue (ACMR), Plexure said.

The company rebranded in July to shift away from the idea it's solely focused on mobile devices and reflect the role it plays for global brands including McDonald's and Ikea.

Plexures's ACMR - a favoured revenue measure for software-as-a-service companies - was $6m in the six months to Sept. 30, up 25 per cent from the same period a year earlier, according to the first-half results released in November.

In September, chairman Phil Norman told shareholders ACMR was about $7.1m, and the company was targeting $10m in ACMR by the end of calendar 2016, guidance Plexure first gave in December 2015.

Plexure raised $3.2m in the first half via a private placement, and said it wanted to raise up to $3.5m more through a further private placement. The company sold 1.25 million shares at 24 cents on Dec. 20, bringing in $300,000.

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