Wowio Inc (OTCMKTS:WWIO) announced that it secured a preferred equity investment commitment worth $5 million to further work on its technology development. It will help the company to support its fund expansion efforts and meet other working capital needs. The financing commitment is being offered by private equity firm, Premier Venture Partners, LLC.
The expert view
Brian Altounian, the CEO of Wowio said that the recent funding commitment comes at a crucial time for the company as it transforms from a technology development firm to an execution-stage entity. By having the financial commitment in place, the company can be in control of its destiny particularly when it is about expansion initiatives and potential acquisitions to achieve the goals.
Wowio is close to releasing its new platform. There are several lucrative opportunities in the eBook distribution landscape. The company will evaluate those opportunities more closely. The financial support gives more bargaining power and increased flexibility, enhancing shareholder value.
Wowio has a patent that enables for the placement of advertising into eBooks. It can be better termed as a proprietary mobile ad network and mobile eBook distribution platform, making the digital publishing distribution source as a practical alternative compared to other content distribution outlets.
The share price of Wowio has been declining down the charts from the last six months and has eroded over 95% of its value during this period, entering low into triple-zero land, making a 52-week low of $0.0002 per share on April 7, 2015. The momentum in share price is not at all surprising, given the financial performance of the company as reflected in last report.
As per the last report, Wowio had $51 in cash. The current assets came at $310,000 and the current liabilities were $3.51 million. The quarterly revenue came at $50,000 and the net loss was $294,000. However, after the financing news, the stock price gained 106.90% to close the day at $0.0006.