Migme has canceled a proposed placement and its shares are getting smoked

Migme co-founders Mei Lin Ng and Steven Goh (R).

Social media platform Migme has cancelled a proposed placement after it decided it wasn’t possible to complete the transaction at the price premium it had hoped.

Migme launched onto the ASX via a backdoor listing through Latin Gold last year.

Since then its share price has been volatile, rising from $0.40 in December to a high of $1.07 in January before falling back into the $0.60 range. Shares were down 7% a short time ago to $0.64 on the ASX.

CEO Steven Go has conducted a number of institutional presentations across Europe and Asia. While the company said there was demand for Migme stock it blamed “volatility in world markets” and the company’s tanking share price over the past fortnight as the reasons behind the placement cancellation.

“It is no longer possible to complete the proposed placement at the quantum and price premium as originally intended by the company,” Migme said.

It said the cancellation is in the interests of existing Migme shareholders.

The company said it didn’t really need the cash anyway. As of December 31 it had $5.9 million cash on had and over 10 million monthly active users.

“Revenue from its core social entertainment platform business are rising, acquisitions are being integrated and costs associated with positioning the company for growth is falling away,” Migme said.

The board will continue to assess funding options as the arrive but said it “has no immediate need to raise additional capital”.

Here’s the chart.

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