KNeoMedia raises cash for marketing blitz, CEO tips in
KNeoMedia (ASX:KNM) has bagged just over $800,000 from an oversubscribed raising – and the CEO has tipped in $200,000 of his own money into the bargain.
Coming out of a halt today, KNM told its shareholders that it had managed to raise $812,000 through the issuing of 58 million new shares in the company at 1.4c.
The raising also comes with a free attaching option exercisable at 2.5c, but will expire two years from the date of issue.
The cash will go towards paying off $250,000 off its debt and marketing its suite of ‘edutainment’ products in key regions.
CEO, James Kellett, agreed to tip in $200,000 as an unsecured loan to the company – which is being converted into shares on the same terms of the placement.
He said the cash would be used on a marketing blitz in key channels.
“This capital injection will not only allow us to reduce convertible note debt by $250,000, it provides near term funding certainty enabling us to further drive the uptake of our edutainment products in key regions through strategic channel marketing,” Kellett said.
Recently KNeoMedia announced a push into the special needs market – signing up 600 students in New York – but eyeing a potential market of 200,000.
It has also expanded into China, as well as expanding its product suite by picking up the ‘Clever Goats’ series of apps for distribution in the US.
KNeoMedia is an online games publishing company that delivers world-class edutainment (education and entertainment) games to global educational and consumer markets.
The edutainment industry is currently a $1.5BN industry and is set to grow to $2.3BN in the next two years.
KNM sells its games on a micro-subscription and Apps basis through the KNeoworld.com games portal, App stores and via distribution agreements and education departments.
Primary-aged students (aged between 5 and 13) can play their way through games that are subtly infused with high level educational content in the areas of numeracy, literacy, science and arts.