Kondoot, the home-grown social network that focuses on broadcast of live video, has lodged a prospectus with the Australian Securities and Investments Commission (ASIC) in a move to raise of up to $10 milion.
In its role as corporate advisor, KPMG Corporate Finance’s advice for Kondoot is to work with a panel of Australian and overseas brokers to promote the available shares in Kondoot to clients.
According to Kondoot co-founder and executive director, Mark Cracknell, the partnership to KPMG came about when the institution approached the social network outfit.
“They are one of the global leaders in corporate finance in a lot of sectors, so we were happy to partners with KPMG in the capital raise,” he said.
As for why Kondoot is submitting a prospectus, Cracknell says that the social network had a significant interest from its previous capital raise, but due to Australian regulation, it is unable to have more than 20 sophisticated investors.
“So rather than not have these people invest, we decided to get a prospectus and open the capital raise to a further $10 million,” he said.
The $10 million amount will be then used to expand Kondoot.
“We have already begun to recruit more team members in our marketing and IT divisions, so we’re looking to expand Kondoot’s presence around the world and market it more heavily,” Cracknel said.
“We’re improving the technologies and developing the site further, we’re always adding more features, and with the additional $10 million, we’re able to improve the speed of that process and have more interesting features coming out all the time.”
The timing of the move is also attributed to the interest from the previous capital raise.
“When we reached a point where we were unable to have any more sophisticated investors, it was at that point that we decided that because of the interest, that we should go to prospectus,” Cracknell said.
Following that decision, Kondoot began to draft the prospectus document, working with its legal consultants and representatives, and developed the prospectus before lodging it with ASIC on February 16.