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Snipp Terminates Its Previously Announced Non-Brokered Financing

Mobile marketing services firm Snipp Interactive (CVE:SPN) has terminated a $1.1 million non-brokered financing announced earlier this month, as the company assesses other financing options.

Snipp said Tuesday that it was approached by financial and strategic investors in regard to its other financing options.

The company's board and management believe that this decision is in the best interest of stakeholders, Snipp said.

"When we announced the financing terms a number of shareholders expressed concern that the terms were too onerous considering the current financial position of Snipp," said Anthony Durkacz, chief financial officer.

"We will explore all options to address shareholders concerns and allow us to execute on our business and acquisition strategies."

Under the previously announced non-brokered placement, each unit would have consisted of one unsecured debenture of $1,000 and 5,000 warrants. The minimum subscription amount was set at $100,000.

Last week, the company reported second quarter revenue rose 19 per cent, citing a growing sales channel. Sales rose to $106,321, compared with $89,660 a year earlier.

The company reported a wider net loss of $330,380 due to hiring and implementing broader sales and administration abilities, it said.

In early August, the mobile marketing company announced its chairman Atul Sabharwal would replace Erik Hallstrom as chief executive. Hallstrom, who continues with Snipp in an advisory role, stepped down to pursue another opportunity.

Director Ritesh Bhavnani has taken over as chairman of the board.

Snipp provides print publishers, advertising agencies and corporate brands with a full suite of mobile marketing services in North America.

It makes its money by designing and implementing these mobile marketing services. The company is headquartered in Washington, D.C. and has operations in Canada, Mexico as well as India.