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(Alliance News) - Mirriad Advertising PLC on Friday said it expects 2019 revenue to exceed the two years prior and has raised GBP14.2 million via a share placing.
The computer vision and artificial intelligence platform raised the GBP14.2 million through a 94.5 million share issue priced a 15 pence per share.
Shares in Mirriad were down 11% at 17.00 pence in morning trade, giving the company a market capitalisation of GBP17.9 million.
Mirriad also is offering shareholders the chance to subscribe for up to another 26.3 million shares through an open offer at the same price. This would raise up to an additional GBP3.9 million, more than doubling its equity.
The company will use the sharing placing and open offer proceeds for working capital as well as to support its new market strategy.
"We now look forward to putting our transformation strategy into action by further accelerating the development of the technology and platform and by growing our engagement with content producers and distributors in our key markets China, France, Germany, UK and US," said Mirriad Chief Executive Stephan Beringer.
In late June, Mirriad announced a two-year contract with Chinese company Tencent Video, means that Mirriad now receives minimum fixed monthly revenue.
Given the contract, Mirriad is now expecting its 2019 revenue to be at least GBP1.1 million, doubling to GBP2.2 million in 2020. In comparison, the company's 2018 revenue was just GBP416,000, though revenue in 2017 was a little better at GBP874,000.
However, Mirriad still loses money. It recorded a pretax loss of GBP14.4 million in 2018. As at May 31, Mirriad's cash stood at GBP10.2 million with monthly cash consumption running at approximately GBP1 million per month.
Beringer said: "There is now a real sense of momentum surrounding the new strategy we are implementing at Mirriad. The Tencent contract is a very important milestone and proof of the work we are undertaking to get our Academy Award-winning technology to transform the way advertisers can engage with their target audiences.
"We are still relatively early on in our strategic reset, however, we look forward to delivering additional value for our shareholders by sustainably growing the business."
