Mobile Embrace raises funds for next stage growth

Peter Dinham
Friday, 03 February 2012 17:37

IT Industry - Listed Tech

Australian-listed integrated mobile and digital communications company, Mobile Embrace, has raised $1.1 million in a private placement.

Mobile Embrace (ASX:MBE) CEO, Chris Thorpe said the funds would be used as working capital and to further accelerate the growth of the company's integrated mobile advertising and marketing business. Thorpe welcomed US-based private equity firm, Auster Capital Partners, as shareholders 'among other sophisticated investors.'

The Company placed 61,111,111 million ordinary shares at $0.018 each and, according to Thorpe, the capital raising comes at an important time in the company's development with 'increasing market activity, the overall growth in the industry and our tier 1 mobile advertising publisher network that is evolving at pace.'

Auster Capital Partners managing partner, Chuck Auster, said Mobile Embrace's prospects were bright and the firm wanted to 'step up our commitment to support working capital needs as Mobile Embrace continues its strong growth.' In September 2011, Auster Capital Partners executed a secured loan facility with Mobile Embrace.

In its statement to the ASX, Mobile Embrace's half-year result shows revenue increasing to $4.9 million, up from $3.9 million in the previous six month period to June 2011.

The Company predicts a strong March quarter with revenue growth of greater than 10 percent on the December quarter.