Monaker Prepares for Nasdaq Application with Divesture of No Monaker Prepares for Nasdaq Application with Divesture of Non-Core Assets and Elimination of Convertible Debt
WESTON, FL--(Marketwired - Sep 6, 2017) - Monaker Group (OTCQB: MKGI), a technology-driven travel company, has divested certain non-core assets for $2.9 million. It has also completed the conversion $1.4 million of convertible debt owned by a long-term shareholder and company insider. The conversion into shares of common stock has eliminated all of the company's remaining convertible debt.
"The divestiture of these non-core assets and elimination of convertible debt, along with our recently completed $3 million private placement, substantially strengthens our balance sheet as we prepare our application for up-listing on the Nasdaq Capital Market," said Monaker CEO, Bill Kerby. "The private placement and conversion of debt into equity reflects the confidence of our major stakeholders in our business model and near-term growth prospects."
"The listing on Nasdaq will represent a significant milestone for Monaker, since we believe it will help attract a broader base of global institutional and retail investors, and provide greater liquidity for our shareholders," added Kerby. "The increased awareness of Monaker in the financial community will be timely, as we are nearing the first commercial launch of our cloud-based Monaker Booking Engine (MBE) by a major travel industry partner."
MBE delivers the company's global inventory of more than 1.4 million instantly-bookable properties directly into a B2B partners' existing booking system using an proprietary application program interface (API) that provides a "white label solution" that allows the travel distributor to access and customize vacation rental properties for their website -- a unique capability recognized as an industry-first.
Given the long-standing industry need for instantly-bookable alternative lodging rentals (ALR) reservations, several leading travel service wholesalers, retailers and travel agents are currently working to integrate MBE technology with their vacation and travel package distribution channels.
With MBE and its consumer-focused NextTrip website and mobile app, Monaker is looking to take advantage of the growing demand for ALR and the skyrocketing growth in digital travel sales. The ALR industry is expected to grow at more than 7% CAGR to $194 billion in 2021, according to Technavio, making it one of the fastest growing sectors of the travel industry. Meanwhile, worldwide digital travel sales will climb at a 9.7% compounded annual growth rate to top $817 billion by 2020, says eMarketer.
Further details about the divestiture and conversion of debt into equity are available in the Form 8-K the company filed today with the U.S. Securities and Exchange Commission at www.sec.gov.
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