The two-week suspension will allow the social entertainment company’s fundraising process to be carried in an orderly fashion
Last week, e27 reported that Singapore-based and ASX-listed social entertainment company migme raised AUD 2 million (US$1.5 million) through an allocation of shares to leading Chinese photo and video app developer Meitu. In the midst of it, it entered into a voluntary suspension of share trading to ensure the capital raising process was conducted smoothly.
Today, it is announcing it is extending the ASX suspension by two weeks, citing market volatility caused by the Brexit.
“We entered into a trading halt and subsequent voluntary trading suspension on 30th June in order to conduct a capital raise to secure more funding for the company. We did this because we are focused on achieving a cash flow neutral position by the end of this year, and need capital to see us through to this milestone,” said Steven Goh, CEO of migme, in a statement to e27.
“Due to Brexit, the process has been more protracted than intended, and in the best interests of all shareholders we are seeking an extension of the current ASX suspension by two weeks so we can complete our financing process in an orderly manner,” he continued.
“Essentially we felt this was the best way to ensure that the Company is properly funded without materially compromising shareholder value. Securing the funding we need to help grow the company to get us to a cash flow neutral position by the end of this year will be the best outcome for the company and all of its shareholders.”
Goh said migme will be closely working with its key shareholders FIH Mobile Ltd (Foxconn) and Meitu in this matter.
Also Read: Social entertainment company migme now offers curated deals from Lazada and Snapdeal
New faces in the leadership team
In other developments, migme is adding new faces to the leadership team — this includes internal promotion — they are:
- Yen Chang (Charles) Pan, formerly the Chief Investment Officer of Foxconn, will join migme as its Chief Strategy Officer. His expertise in corporate development, finance, analysis, strategy, mergers and acquisition, the Internet, technology, mobile and media.
- Craig White, former CEO of Naspers / MIH Southeast Asia (where he was responsible for investments in companies including Tencent), will join as the Chief Operating Officer.
- Andi Zain, who was formely director on migme’s board will be moved to the position of Non-Executive Chairman to help guides the business. Zain is also the director several technology-based entities, including the Jakarta Founder Institute, Myanmar Innovation Council, Chairman for Mobile Monday Indonesia
Goh said the new appointments will help deliver migme’s goal to tackle users from emerging markets in Southeast Asia.
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