Tinybeans is soaring after hooking up with Lego, shares up 75pc
Who doesn’t like Lego? Well, aside from unfortunate parents who step on the tiny pieces in the night, generally the vibe towards Lego is that it’s a winner.
And this is what investors think about kiddy news sharing website TinyBeans’ (ASX:TNY) deal with the company: they’re already bidding the stock up from the 40c it closed at on Friday to 70c in the opening minutes of Monday morning trading.
The deal is a year-long advertising contract to sell ads for Lego’s DUPLO products to parents in the US.
Tinybeans says the contract is the “largest to date”, although it didn’t say how much exactly, in contravention of the ASX’s year-old rule that companies must state the counterparty and value of contracts announced to market.
It did say it’s bigger than a $200,000 marketing campaign it signed with a US life insurer in February.
Tinybeans is a website for parents — a walled garden for personal pics and news about their kids. In the process it collects data to build a personalised marketplace of content, products and services.
By December 2018 it had 1.1m active users, up from 798,645 a year prior.
It more than doubled half-year revenue to $1.7m by the end of 2018, but higher admin, marketing and employee costs meant the loss was about the same as the corresponding period — $2.1m.
Digital Wine Ventures (ASX:DW8), formerly known as Dawine, director Tony Ramage bought $27,530 of stock in the company although his stake in the company dipped to 5.8 per cent of the register. Ramage is the boss of 123 Home Loans.
Digital Wine has been having a hard time talking a shareholder around to the acquisition of Wine Depot, a company owned by the new CEO Dean Taylor. In March they postponed the AGM, due on April 11, after the unnamed shareholder launched a Supreme Court of Western Australia suit seeking, among other things, to halt the purchase.
The meeting to approve the purchase will now be held next week.
Crowd Media (ASX:CM8) has refinanced a debt they’ve been struggling to sort out all year. Lender JWB gave them until April 12 to pay up. Today the company said a lender named Billfront had agreed to pony up the cash at 11.3 per cent p.a. interest.
The social media marketer has been struggling to make things work, with half year revenue falling by a third to $14m at the end of December and the bottom line swung from a profit to a devastating $2.3m loss.
While the directors were convinced they could keep the dream alive, the auditors of the half year report were less so saying the loss and negative cash flows created “material uncertainty… on the group’s ability to continue as a going concern”.
And Morgans reckons Bravura’s $2.50 a share bid for fintech software seller GBST (ASX:GBT) is rubbish. It not only undervalues the company’s long-term potential but the bid multiple is way below comparable deals internationally.
They’re picking $3.47 for GBST’s 12-month price target.
GBST is also giving the offer the side eye, recommending shareholders sit tight for now as it’s highly conditional, with conditions including, among others, relevant approvals, due diligence, change of control consents and executing a scheme of arrangement.