Wannabe megastar MSM Corporation remains in voluntary suspension for a third week despite announcing it has raised another $1.72 million.

The entertainment promoter — which runs an app-based talent competition hosted by pop star Usher — told investors it still had a “further detail” to sort out.

“MSM requests an extension to the voluntary suspension in the company’s securities until the finalisation and announcement of further detail regarding its 2018 strategy following legal advice and finalisation of consultation with the ASX.”

The voluntary suspension is now set to be lifted on February 27.

In the latest placement MSM (ASX:MSM) raised $1.72 million at 4.3c – at a 24 per cent discount to the 15-day volume weighted average price.

MSM share price movements over the past six months.
MSM share price movements over the past six months.

Further to that, MSM is looking to raise another $3.44 million in entitlements – together with the placement the third time the company has raised capital following a $10.5 million raise in August and another $3.4 million in November.

“Completion of Megastar’s technology, legal and brand build, strong engagement metrics, powerful industry partners and significant expenditure reductions, are proving to be a compelling proposition for strategic investors in the United States and Asia,” MD Dion Sullivan.

“Given the recent share price performance, we are offering shareholders the opportunity to strengthen MSM’s balance sheet ahead of the final stages of these strategic negotiations.”

It comes after the company revealed it had banked just $6000 from customers in the last quarter – but MSM told shareholders a renewed 2018 strategy would bring more money from its contestants and fans.

“Over the past 5 months, the Company has consulted with leading US technology and legal firms to develop new features and services to allow performers to monetise their creative works in collaboration with fans on the Megastar platform,” MSM said.

The company said it had plans to reduce estimated cash outflows by 70 per cent from the last quarter.

As well as hunting for money, the company are also on the search for a board member, after executive director Sophie McGill stepped down.

“Sophie’s departure makes way for new appointments as the Company pursues its strategic objectives in 2018. Discussions are in progress with prominent individuals in the entertainment industry following the finale of WWT1.”