Newzulu unveils name change and Seven app deal – but investors unmoved
News-gathering app Newzulu — which is undergoing a name change and 200-for-1 share consolidation — has struck a deal to build a crowdsourcing platform for the Seven Network.
Microcap stock Newzulu (ASX:NWZ) will build an app allowing Seven to curate and broadcast user-generated content related to upcoming sport events such as the Sydney to Hobart yacht race, Australian Open, Winter Olympics and Gold Coast Commonwealth Games.
“Millions of people will watch these events and the app we are developing with Seven will empower them to share their experiences throughout the Seven Network,” said Newzulu chief Marc Milgrom.
“We believe this can truly change the way fans engage with major sporting events.”
Alas investors — perhaps under the impression that Facebook, Instagram, Twitter and Snapchat already allow widespread social sharing of sport content — were unmoved.
The stock remained steady at 0.1c last week, valuing the company at $7.3 million.
The news comes ahead of a name-change to CrowdSpark to “more accurately reflect the core values and attributes of the business”. (The ASX code will change to CSK from November 30.)
Newzulu/CrowdSpark told investors the new name would “enhance the link between core operations of the business and the company’s identity.”
At last week’s annual general meeting, shareholders also voted to consolidate the company’s 7.3 billion shares to 36.5 million.
“Beyond a brand change, today we will move to consolidate the vast number of shares we have in the marketplace,” chairman Charles Koones said.
“We believe this share consolidation of two hundred to one will add to the liquidity of our shares and open CrowdSpark to a wider range of potential investors.”
Some 93 per cent of consumers find user-generated content to be helpful when making a purchasing decision, Newzulu/CrowdSpark believes.
UGC is 20 per cent more influential than any other type of media when it comes to influencing purchases of millennials, the company says.