Digital media company migme will be seeking alternative options to restructure after plans to sell its underlying business to US-based investment group Solaris Power Cells fell through.
In a statement, migme said it had scrapped the all-scrip acquisition after Solaris failed to deliver on its obligations under the deal, and it was now evaluating alternative options.
“The company expects to announce an alternative plan shortly,” it said.
The news came as migme revealed it had dipped further into the red with a $23.1 million loss after tax for the 12 months to December 31 2016, down 10 per cent on its previous full-year result, while revenue was 12 per cent lower at $12.1 million.
The company made a number of cost cuts during the year, including reducing its headcount by about a third.
Despite that, migme’s two executives - Anthony Benino and founder Steven Goh - received increases to their base salaries.
Mr Goh was paid a base salary of $341,226 for the year, up from $309,305 last year but without a near-$100,000 bonus.
After incentives including share options, Mr Goh took in $1.35 million in 2015.
Mr Benino, meanwhile, was paid $420,000 for the year, up from $122,500 in 2015.
In the space of 12 months, migme’s market capitalisation fell from $242.5 million to just $27.2 million by the end of 2016.
“While it has been a challenging year for the company, we are excited to see continued progress in monthly active users growth and encouraging data flowing in from our monetisation strategies, and we believe we are well placed to achieve cash flow positive operations in 2017,” Mr Goh said.
“While we regret the market performance and the operational distraction with the convertible note financing in the final quarter of last year, we are proactively managing our cost profile and are strongly focused on monetisation.”
migme shares have been suspended from trade since February.
