ShareRoot Ltd (ASX:SRO) has closed its rights issue last week with an initial $0.7 million raised via the issue of 143,723,344 shares at $0.005 per share.
There is significant interest in the shortfall of 257,063,712 shares from strategic investors. ShareRoot is expected to update on the placement of the shortfall over the coming weeks.
Social network advertising forecast to grow to US$17 billion per year
ShareRoot is specialised in User Generated Content (UGC) marketing - allowing businesses to search, acquire, organize and measure the effectiveness of user generated marketing campaigns.
UGC or social network advertising is forecast to grow into a US$17 billion per year marketing sector with an 18% compound annual growth rate through to 2019.
Financial flexibility to pursue key growth objectives
The completion of the capital raising provides ShareRoot with sufficient financial flexibility to pursue its key growth objectives for 2018.
The company has already witnessed rapid user-growth in the second half of 2017, with its user base increasing by over 210,000 since the June quarter, reaching 393,701 users by December 2017 - a circa 116% increase.
End-to-end social and digital media content company
The three platforms within ShareRoot (UGC, MediaConsent and TSS) now positions it as an end-to-end social and digital media content company.
The roll-out of MediaConsent has expanded ShareRoot’s platform into the multi-billion dollar Customer Identity Management (CIM) market.
MediaConsent will provide protection to both individuals and companies and will enable companies to operate without concerns of litigation across all digital marketing channels.
READ: ShareRoot to acquire profitable digital content agency
TSS is a profitable social media and digital marketing agency that is complementary and builds on ShareRoot’s existing client offerings across social and digital marketing segments.
With three core activities underway, the company anticipates a significant increase in revenue in 2018.
