Ann: GENERAL: SNK: Snakk unveils capital raising terms & date

• Release Date: 05/10/15 09:50
• Summary: GENERAL: SNK: Snakk unveils capital raising terms & date
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					SNK
05/10/2015 09:50
GENERAL
PRICE SENSITIVE
REL: 0950 HRS Snakk Media Limited

GENERAL: SNK: Snakk unveils capital raising terms & date

SNK - MARKET UPDATE

Snakk unveils capital raising terms & date
4 x Key Operating Milestones released as NXT move gets underway

AUCKLAND, New Zealand, 5 October 2015 -Snakk Media Ltd., (NZAX: SNK)  is
today launching a public equity Offer for new and existing shareholders,
which aims to raise up to $NZ2.3m. The Offer opens on 12 October and Snakk
has applied to transition its listing to the NXT Market following the Offer's
completion.

Through the Offer, Snakk is aiming to raise $1.5 million by offering new
ordinary shares at $0.045 per share, and will accept oversubscriptions up to
an additional $0.8 million. This represents a discount of 8.2% to the closing
share price for Snakk on 2 October and a 9.9% discount to the volume-weighted
average share price for Snakk over the last 30 trading days.

All NZ resident investors can participate in the general Offer, with an
allocation preference available to existing shareholders listed on the Snakk
share register by 5pm today. New investors will have until Friday, 30 October
2015 to participate, with the Shareholder Priority Offer closing three days
earlier, on Tuesday 27 October.

Funds raised from the Offer will allow the company to recruit key expertise
to accelerate growth in new and existing markets, successfully manage the
associated setup costs and marketing programmes for Southeast Asia, continue
its search for, and investment into innovative and leading mobile advertising
technologies, and see the company through to a cash flow positive position on
its core operations.

Transition to the NXT
As Snakk enters its next phase of growth, the board believes NXT is a better
market for Snakk due to its requirement for issuers to publish transparent
Key Operating Milestones and the support received through NXT advisors and
third-party research. Snakk's Key Operating Milestones are revealed in
today's Offer document. It is expected that trading of the Shares on the NXT
Market will begin 5 November, following the allotment of new ordinary shares
issued under the Offer, subject to approval from NZX.

London-based Edison Investment Research is expected to publish its next
review of Snakk's performance and growth strategy on 12 October, at the same
time as the Offer opens. The Lead Manager to the Offer is Miro Capital
Advisory Limited, which is also acting as the company's NXT Advisor.

Four new performance metrics - Snakk's transparent Key Operating Milestones
Today Snakk has revealed the four Key Operating Milestones to help investors
assess the company's performance: click-through rates, a measure used by the
mobile advertising industry to assess the effectiveness of online advertising
campaigns; gross margin and revenue to compensation ratio, which both assess
operational efficiency and profitability; and staff turnover rates, a measure
of team stability, important because Snakk's people are integral to the
company's profitability and growth.*

Comments from Snakk Chair & Group CEO
"With consistent revenue growth across multiple regions, excellent talent and
market-leading technology, we are a much stronger business than when we
listed two and a half years ago," says newly appointed Snakk Chair Peter
James, who has stated his intention to subscribe to the Offer.

"During the past year we have continued to grow our team, evolve our
technology portfolio and create a culture which is absolutely critical to our
success. Importantly, we have continued to grow revenue, greatly improved our
margins, and in the past nine months we've seen a significant decrease in our
year-on-year rate of cash usage. We've demonstrated that we are capable of
successfully executing our long-term growth strategy in a fast-moving
industry."

Snakk Group CEO Mark Ryan adds: "Our operations are maturing rapidly across
Australia and NZ, and our small team in Singapore is servicing an enormous
Southeast Asian population that is over 25 times the size of Australia and
New Zealand. Research indicates that rising markets like Southeast Asia will
become the leading contributors to global ad market growth in 2016 and
beyond. Part of the capital raised will fund our efforts to find the
strongest talent and mobile advertising technologies so we can achieve our
regional growth goals over next 12-24 months."

An Offer Document providing full details of the Share Offer as well as an
overview of Snakk and its business will be available at this website from
Monday 12 Oct at 10.30am: www.snakkoffer.com.  Investors will also be able to
use apply for Shares online through the website.

Investors are welcome to join Mr Ryan and Mr James at a public forum on the
day the Offer opens on Monday 12 Oct at 10.30am, where they will provide an
overview of the business and the general Offer, as well as answer questions
from the investment community at NZX's Auckland office (Level 7, Zurich
House, 21 Queen Street).

ENDS

Notes to editors - Media are invited to join the investor meeting on Monday
12 Oct at 10.30am. Please RSVP to Julie Landry at [email protected]
or call +64 21 895 098.

* Note on Key Operating Milestones - The following table shows the actual
performance of Snakk in relation to the Key Operating Milestones for each of
the years ended 31 March 2014 and 2015, as well as targets for those Key
Operating Milestones for the years ended 31 March 2016 and 2017.

Year ended 31 March 2014 Actual 2015 Actual 2016 Target 2017 Target

Click-Through Rate* 0.70% 0.90% 0.95% 1.00%
Gross Margin  41% 42% 55% 55%
Compensation Ratio 33% 44% 45% 42%
Staff Turnover** 14% 19% 22% 24%

* an estimated industry average click-through rate for mobile is
approximately 0.62% http://www.medialets.com/insights/benchmarks-2014-h1/
** the Media Federation of Australia recently reported that average staff
turnover for media agencies in 2014 was over 33% pa
http://www.mediafederation.org.au/images/Files/mfa_infographic.pdf

For media enquiries, please contact:
Julie Landry, +64 21 895 098, [email protected]

For investor enquiries, please contact:
Malcolm Lindeque, Company Secretary, +64 21 464 392, [email protected]

www.snk.co.nz, www.twitter.com/snakkmedia

John Moore, Miro Capital Advisory Limited, +64 9 213 3474,
[email protected]

Note: The offer of shares in Snakk Media Limited (Snakk) is made on the terms
and conditions set out in the offer document. Application has been made to
NZX Limited (NZX) to move Snakk's listing to, and to quote its shares on, the
NXT Market.  All of the requirements of NZX relating to that application that
can be complied with on or before the date of this letter have been duly
complied with. Snakk intends to move its listing to the NXT Market regardless
of the outcome of the offer.  However, NZX accepts no responsibility for any
statement in this letter.  It is expected that trading of the shares
(including the new shares offered under the offer) on the NXT Market will
commence on 5 November 2015.  The NXT Market is a licensed market operated by
NZX, which is a licensed market operator, regulated under the Financial
Markets Conduct Act 2013.
End CA:00271270 For:SNK    Type:GENERAL    Time:2015-10-05 09:50:36