23rd Feb 2015 07:57
LONDON (Alliance News) - Audioboom Group PLC Monday announced it has signed a content deal with comedian Russell Brand, as it posted a widened loss for its recently ended financial year.
The company, which operates a spoken-word audio on-demand mobile platform, announced it has signed a deal with Brand to provide it with exclusive content. Brand will record twice-weekly exclusive shows for Audioboom, and also will head up a new marketing campaign for the platform.
"Having Brand as the face and voice of Audioboom has the potential to rapidly increase our mobile app downloads and the number of registered users for our platform," said Chief Executive Officer Rob Proctor in a statement.
Audioboom posted a pretax loss of GBP3.9 million for the eleven months to end-November 2014, widened from a pretax loss of GBP1.6 million a year before, on revenue of GBP51,000 compared to GBP45,000, primarily as a result of exceptional costs relating to the company's formation through a reverse acquisition. One Delta PLC acquired Audioboo Ltd last May and changed its name to Audioboom Group.
The company raised GBP7.7 million last October, which it will use to fund its growth. Primarily it is using these funds to roll-out its application, expand its New York and Australian offices, develop a Hispanic version of the application, expand its content curation team, and create an audio advertising network.
As the company said it is in a "startup phase", it has opted not to pay an interim or final dividend, and will instead use its cash to continue its growth strategy.
Audioboom said it continues to trade in line with expectations, with its registered user numbers rising to around 3.4 million so far in 2015 from 3.14 million at the end of its previous financial year.
Additionally the company also issued 800,000 warrants to subscribe for ordinary shares to Saxon Bruce Ltd as part of a deal to supply talent and audio content to Audioboom, along with promotion. The warrants have an exercise price of 12.5%, which Audioboom says is a 27% premium to its latest closing mid-market price per share. Shares in Audioboom last closed at 9.88 pence.
The warrants are equivalent to around 0.15% of its total shares in issue, Audioboom said.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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