Mandalay Digital Group Inc (NASDAQ:MNDL) Raises $18.6 Million

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Mandalay Digital Group Inc (NASDAQ:MNDL), the diversified communication services provider with a market cap of $154 million announced on 7th March, that it has closed  its public offer of common stock which was announced on 3rd March. From this underwritten offer, the firm has managed to raise close to $18.6 million in proceeds which it hopes to use the proceeds to expand its online and mobile advertisement product offerings.

Public Offer Details

In the public offer, close to 4.8 million shares of common stock were farmed out excluding the close to 0.6 million shares of stock that were set aside for coming good on the option exercise by underwriters in the event of over allotment of shares to public. The offer went through at a selling price of $4.1 per share as was previously announced on 4th March.

Mandalay Digital Group Inc (NASDAQ:MNDL) had retained the services of Ladenburg Thalmann & Co. Inc., which is a fully owned sub of trading and brokerage house Ladenburg Thalmann Financial Services Inc. (NYSE: LTS) as its sole book-runners while, Craig-Hallum Capital Group officiated as the  co-manager for the exercise.

Funding To Help Firm Expand Online Ad Footprint

The funding infusion into the firm became necessary, after Mandalay Digital Group Inc (NASDAQ:MNDL) signed up strategic partnerships with a host of  online advertisement network players and traditional advertisement agency power houses with the aim of providing more holistic and competitive pricing to its mobile carrier user base. The online ad network deals were struck with the likes of Appia and Taptica, while the direct advertisement deals were stuck with Grab Games and Pokerstars.

CEO Speak

Explaining the logic behind this move to tie up with potential competitors, Mandalay Digital Group Inc (NASDAQ:MNDL) Chief Executive Officer, Director Peter Alan Adderton has been quoted to have said that, “Operators have been searching for a way to get back into the mobile content ecosystem, while still providing a compelling experience for their subscribers, and Digital Turbine is the only company that can provide a seamless, end-to-end solution.”

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