Computer vision and AI-powered advertising company MiriAd Advertising plc (LON: MIRI) have seen their share price dip in morning trading, despite the Company securing a new contract and expecting bumper revenues.
MirriAd have just penned a two year contract with one of China’s largest digital entertainment platforms, Tencent Video. The Company said the impact of this contract will be that their revenue for 2019 will stand at a minimum of £1.1 million, which exceeds 2017 and far exceeds the revenues of 2018.
Further, the Company’s cash resources stood at £10.2 million at the end of May, and their cash consumption stood at £1 million a month.
MirriAd also announced it had raised £14.18 million through its share placing, which is pending approval at a general meeting on 31 July 2019. Qualifying shareholders will also be offered the opportunity to subscribe for an aggregate of up to 26,278,920 of Ordinary Shares through an open offer to raise £3.94 million.
“The proceeds of the placing will be used for general working capital purposes and to provide the Group with sufficient funds to demonstrate the efficacy of its new go-to-market strategy and revenue traction with partners in its key markets.” The Company said in its statement today.
In the Company’s trading update, CEO Stephen Beringer commented,
“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.”
In response to the Company’s share placement update, MirriAd’s CEO said,
“We were very excited by the tremendous support from our investors and the strong commitment from new backers in the fundraise announced this morning.”
“It shows the great confidence in our product and our new strategy, after the previously challenging period for the company.”
“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.”
“Mirriad’s new strategy has borne its first fruit in the shape of a two-year contract with Tencent, one of the largest and most influential technology and platform companies in the world. This new partnership will positively affect the Company’s 2019/20 revenues.”
The Company’s shares have dipped 10.58% or 2.01p to 16.99p a share 05/07/19 11:51 GMT.
Elsewhere in the tech sector; Zoo Digital Group plc (LON: ZOO), Vela Technologies Plc (LON: VELA), Remote Monitored Systems PLC (LON: RMS), Tekmar Group Plc (LON: TGP), Redcentric PLC (LON: RDN) and Codemasters Group Holdings Limited (LON: CDM) provided trading updates.