Ottawa-based Ackroo (TSX-V:AKR), which develops gift cards and loyalty rewards technology for retailers, said it’s secured a much-needed cash injection and plans to hire more staff.
The firm previously said it had less than $13,000 in cash on hand as of Sept. 30 when it reported its most recent quarterly results late last month.
On Friday, the company said it had raised $1 million through a private placement.
“This financing was key to our next phases of growth,” said Ackroo CEO Steve Levely in a statement. “The funds allow us to support our working capital requirements while also providing us with additional funds to hire more staff back into ... sales, marketing and product development.”
The company reported a loss of $488,645 in its most recent quarter. That compares with a loss of $284,382 during the same period a year earlier.
Its quarterly operating loss from operations, excluding interest, taxes, amortization, stock‐based compensation and restructuring charges, was $107,960. A year earlier, Ackroo's loss from operations was $53,991.
Mr. Levely said in today’s statement that the additional employees would help the firm with “closing the final gap of our operating losses.”
In connection with the private placement, Ackroo issued five million common shares to subscribers at a price of 20 cents per share as well as 2.5 million common share purchase warrants.
Additionally, Ackroo granted options to purchase 235,000 common shares to officers, employees and consultants of the company at 20 cents each for a period of three years, subject to the approval of the TSX Venture Exchange.
Ackroo’s stock price was up three cents, or 15 per cent, to 23 cents per share in late morning trading Friday.