Talent quest promoter MSM Corporation gave $US1 million to the winner of its Megastar competition on December 15 — but banked only $6000 in sales for the quarter.

The shares remained in suspension after a third extension today, pending announcement of a fund raising.

MSM (ASX:MSM) burned through more than $6.2 million in the quarter as they wrapped up the first of their mobile-first talent competitions.

That’s on top of $5.6 million spent in the previous quarter.

Now MSM — which had $1.4 million left at the end of December and estimated outgoings of $1.7 million this quarter — is going back to market to rattle the tins.

The latest proposed raise would be the third for the company in just six months – following a $10.5 million raise in August and another $3.4 million in November.

Megastar (MSM) share price movements over the past six months.
Megastar (MSM) share price movements over the past six months.

But the company says it is on the right track for its performance metrics – touting 435,000 installs of its app in 10 weeks with more than 23 minutes per session for voting users.

“MSM has now developed and proven a new model for operating talent competitions globally via a mobile app platform,” it told the market.

“Megastar’s talent competition platform is significantly lower cost to operate and scale than equivalent television formats. Megastar now has data and IP to engage with large media partners to scale Megastar.”

In December MSM launched a scaled-down monthly ‘spotlight’ tournament which will run in the lead up to a second world wide tournament in the second half of 2018.

Shares in the company have been suspended at 4.3c since January 15, a record low from as much as 34c in October.

The latest suspension is expected to last until February 7, when the company announces results of tournament data analysis, their 2018 strategy and the details of the proposed raising.