Article – BusinessDesk
Dec. 30 (BusinessDesk) – Plexure Group, the digital advertising firm formerly known as VMob, has signed an agreement with the biggest McDonald’s franchisee in Latin America and the Caribbean, expanding its relationship with the global fast food giant.Friday 30 December 2016 01:38 PM
UPDATE: NZX ‘assessing’ Plexure trading after shares soar ahead of announcement
By Sophie Boot Dec. 30 (BusinessDesk) – Stock market operator NZX is “assessing” Plexure’s recent trading after the stock soared 26 percent a day before announcing an agreement with the biggest McDonald’s franchisee in Latin America and the Caribbean.
Plexure Group, the digital advertising firm formerly known as VMob, announced the deal today, sending the shares up a further 33 percent to 32 cents. The stock sank to a record low 19 cents on Dec. 22, and has dropped 46 percent this year.
The deal with Arcos Dorados Inc has a contracted starting fee of about $1.1 million of annualised committed monthly revenue (ACMR), Plexure said. The company rebranded in July to shift away from the idea it’s solely focused on mobile devices and reflect the role it plays for global brands including McDonald’s and Ikea.
“NZX is aware of the movement in Plexure’s share price over the past two days, and Plexure’s announcement today regarding the entry into of contractual arrangements with Arcos Dorados Inc,” the exchange operator told BusinessDesk in an email. “In accordance with NZX’s routine surveillance processes, trading ahead of such a price sensitive announcement will be assessed in detail. NZX has no further comment on the matter at this time.”
Plexures’s ACMR – a favoured revenue measure for software-as-a-service companies – was $6 million in the six months to Sept. 30, up 25 percent from the same period a year earlier, according to the first-half results released in November.
In September, chairman Phil Norman told shareholders ACMR was about $7.1 million, and the company was targeting $10 million in ACMR by the end of calendar 2016, guidance Plexure first gave in December 2015.
Plexure raised $3.2 million in the first half via a private placement, and said it wanted to raise up to $3.5 million more through a further private placement. The company sold 1.25 million shares at 24 cents on Dec. 20, bringing in $300,000.