LONDON (ShareCast) - (Sharecast News) - In-content advertising company Mirriad announced on Friday that it will conduct a formal review of its options, to maximise value for shareholders and other stakeholders.
The AIM-traded firm said it believed the company was "significantly" undervalued, and had serious potential for growth in the United States market, as well as in its platform capabilities.

It said the review would include a number of options such as raising additional equity and the possibility of a sale.

The review would also consider the merits of Mirriad remaining a standalone publicly-traded company.

Its board said the sale process element of the review would be undertaken under the City Code on Takeovers and Mergers as a formal sale process, but cautioned there could be no guarantee that an offer would be made for the company, or on what terms.

Mirriad's management said it expected that in-content advertising would become a standard format in the industry, adding that it was currently engaged in negotiations and discussions with multiple tier-one supply-side companies, creating "strong momentum" for revenue opportunities going into 2023.

"The company confirms that revenue for the financial year ended 31 December was £1.51m," the board said in its statement.

"Revenues have firmly pivoted from China to the US over the last two years, with US revenue increasing from 14% of total revenue for 2020, to 44% in 2021 and 78% in 2022.

"As at 31 December, the Company had £11.3m of cash on its balance sheet, ending the year in a better position than initially anticipated due to tight and ongoing efficiency measures."

As it said in its update on 14 December, in 2022, the firm implemented a cost control programme to deliver £2.5m of total annualised savings, with the vast majority to be achieved in 2023.

"The company has previously said that it has sufficient cash to fund operations until the third quarter of 2023.

"The board is confident that with the appropriate funding, the company is on track to deliver its growth strategy and roadmap for 2023, 2024 and 2025 that will be anchored around a wide integration with the media ecosystem, a full roll-out of programmatic transactability, the expansion into new emerging platforms and formats and the acceleration of growth through strategic partnerships in key areas including influencer media, live experiences, live streaming and contextual artificial intelligence."

At 1022 GMT, shares in Mirriad Advertising were up 20.44% at 5.48p.

Reporting by Josh White for Sharecast.com.

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