Keek arranges C$5M raise to fund shift to subscription model
What's the deal? Keek Social has arranged a non-brokered private placement for gross proceeds of up to C$5-million (about $3.6-million). The Toronto-based social media and live-streaming company will use the money to fund sales and marketing as it moves to a software-as-a-service model.
The details. The offering consists of units priced at C$3, with a two-year term from issuance. Keek expects to close in one or more tranches, pending regulatory approvals including sign-off from the TSX Venture Exchange.
What's the endgame? The company is targeting content creators frustrated by platform fees, with three flat-rate monthly subscriptions and zero fees on creator earnings and tips.
Why now? Keek says it plans to work with online creator agencies to onboard creators at scale as it shifts towards a software-as-a-service model.
What could go wrong? Keek warns that it needs to complete the financing to continue funding operations and execute its plan, and that there is no assurance the offering will close on the announced terms or at all.
Read more: Stockwatch
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