TORONTO, ONTARIO--(Marketwired - Aug. 29, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
This news release does not constitute, and the subject matter hereof is not, an offer for sale, or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of VoodooVox Inc. The securities of VoodooVox Inc. have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.
VoodooVox Inc. ("VoodooVox" or the "Company") (CNSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the quarter ended June 30, 2013.
SECOND QUARTER RESULTS
- Revenues for the quarter ended June 30, 2013 of $1.0 million compared to $0.8M for the previous quarter and $1.3 million for Q2 2012. Revenues from the Company's mobile advertising and analytics managed services totaled $740 thousand in the quarter ended June 30, 2013 compared to $413 thousand in the prior quarter and $391 thousand in Q2 2012.
- Operating loss of $0.7 million compared to an operating loss of $1.4 million in Q2 2012.
- Net loss for the quarter ended June 30, 2013 of $1.3 million ($0.01 per share) compared to $1.8 million ($0.01 per share) for Q2 2012.
- At June 30, 2013, the Company had a cash balance of $0.1 million, unchanged from the balance at December 31, 2012.
HIGHLIGHTS
- The Company grew revenue approximately 35% from the first quarter while continuing to reduce fixed operating costs.
- Revenue from the Company's mobile advertising and analytics managed services increased 89% over Q1 as management continues to transition the Company's resources from its legacy voice and data search solutions and legacy mobile platform licensing products.
- The Company continues to pursue its transformational financing including the conversion of 95% of issued and outstanding debentures into common shares and the consolidation of the Company's common shares at a 50 to 1 ratio.
OUTLOOK
In May, 2013, the Company announced that it entered into an agreement with an investment dealer in respect of a private placement offering. The financing was dependent upon obtaining the approval of the Company's shareholders of a proposed share consolidation, and obtaining the approval of the Company's debtholders of a proposed conversion of the Company's outstanding debentures.
At its annual meeting of shareholders in June 2013, shareholders voted in favour of the proposed share consolidation and approved the conversion of the Company's outstanding debentures into common shares. The Company intends to consolidate its common shares at a rate of 50 to 1 concurrent with the proposed debenture conversion and financing.
In July 2013, the Company reached agreements with debenture holders to convert more than 95% of issued and outstanding debentures into common shares at a conversion price equal to the fifteen day volume weighted average market price of the Company's common shares calculated two days prior to conversion. The conversion is subject to the Company completing a financing of a minimum of $1.5 million
Management expects that this financing will dramatically transform the balance sheet and capital structure of the Company as well as improve its ability to attract new investment. Management further believes that the application of new capital can enable the Company to source new publishing inventory and advertising contracts and monetize secured advertising campaigns at a faster rate.
George Cooney, CEO of the Company, noted, "We continue to receive strong demand from our new focus on premium mobile advertising and analytics services. We believe the company's transformational pivot is on track to achieve success in this rapidly growing market opportunity."
This news release should be read in conjunction with VoodooVox's unaudited condensed interim consolidated financial statements, and the accompanying notes, as at and for the quarter ended June 30, 2013, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the VoodooVox website at www.voodoovox.com.
About VoodooVox Inc.
VoodooVox uses consumer analytics to provide smarter mobile advertising services via the cloud to publishers, advertisers and operators. VoodooVox, which represents the combined assets and knowledge base of three companies, namely Call Genie Inc., UpSnap Services, LLC and VoodooVox, now processes billions of advertising transactions for a marquee list of global clients and partners. Currently, VoodooVox solutions are deployed in 11 countries around the world. www.voodoovox.com.
The CNSX has neither approved nor disapproved the contents of this news release.
Forward-Looking Cautionary Statement
Certain information set out in this News Release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "hope", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "scheduled", "believe" and similar expressions. The forward- looking information set out in this News Release relates to future events or our future performance and includes: (i) information concerning the effect of new capital on the ability of the Company to source new publishing inventory and advertising contracts, to monetize secured advertising campaigns at a faster rate and to take advantage of growth opportunities in the mobile advertising space; (ii) the transformative effect of the proposed financing on the Corporation's balance sheet and capital structure; (iii) the Company's ability to succeed in the mobile advertising market and the effect of the proposed financing on the Company's efforts in that regard.
Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Forward-looking statements involve substantial known and unknown risks, uncertainties and other factors which cause actual results to vary from those express or implied by such forward looking statements. These statements should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved.
The forward-looking statements contained in this press release are made as of the date hereof and based on what management of the company believes are reasonable assumptions. The Company disclaims any intention or obligation to update or publicly revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Furthermore, the Company does not assume responsibility for the accuracy and completeness of the forward looking statements set out in this news release. The Company's forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.