migme is still struggling to secure a new investor
As part of transparency requirement at the Australian Stock Exchange (ASX), migme announced that it has extended the deadline of its search for a AU$6 million (US$4.5 million) convertible note to April 17, 2017. The company is also exploring opportunities to sell itself and/or to migrate to a different stock exchange outside of Australia.
The Asia Pacific social entertainment platform is currently not in a very good place financially. Its stock price has slipped to 4.4 cents and the company had requested ASX to suspend its share transactions.
Having been announced since late December, their target for a new debt remains unclear up to this month.
As reported by The West Australia, a representative of Foxconn (which has 20 per cent of shares in migme) has resigned from the company’s board since last December.
migme was founded by Steven Goh and Mei Lin Ng in Australia in 2006.
Losing the competition
As a platform, migme’s business line closely resembles Facebook and LINE. However, in terms of size and user numbers, the platforms could not be more different. Though it claimed to have 33 million active monthly users, the number was not able to push migme to a safer spot financially.
migme’s key metrics as per December 2016. Image Credit: migme
According to its Q4 2016 financial report, by the end of December 2016 migme only had US$400,000 left in its account, and was in the process to reduce operational costs by refocussing the organisation –and quite possibly by laying off employees.
The year 2017 is going to be a make-or-break point for migme. If the company does not manage to secure new investor, the only option left is either to have it sold or shut it down.
The views expressed here are of the author’s, and e27 may not necessarily subscribe to them. e27 invites members from Asia’s tech industry and startup community to share their honest opinions and expert knowledge with our readers. If you are interested in sharing your point of view, submit your article here.
Want to be part of the ecosystem?
Register for your Echelon Asia Summit access pass now! Enjoy +10% off Echelon Asia Summit Startup, Investor and Corporate passes just for being our favourite e27 reader: REGISTER NOW.
The post migme prepares scenario to sell the company, extends deadline for convertible note search appeared first on e27.