Snakk Media

How long has Snakk Media got?

I have been closely following Derek Handley and his latest imminent failure Snakk Media.

This guy is a shameless self-promotor who usually starts conversations like Pearl Going does, by mentioning that he once worked with Richard Branson, or held his dick while he took a leak on an island or some other inane story.

But it looks like Snakk Media has had a gutsful of poor performance.

Snakk Media [NZX: SNK] founder Derek Handley will step down as chairman of the mobile advertising technology company by the end of the year in a wider boardroom shuffle.

Mr Handley, whose interests own about 15% of Snakk, will leave the board of the firm he co-founded in 2010, and Michelle Kong will retire after the September 16 annual meeting, the company said in a statement.

Their exit is part of a boardroom rejuvenation, which will install Australian cloud hosting business Macquarie Telecom’s chairman, Peter James, as executive chairman. He will be based in Sydney along with chief executive Mark Ryan. Broadfield Advisory principal Martin Riegel was appointed to Snakk’s board in June.   Read more »

Nothing to see here, except Derek Handley sweating

Snakk Media, the NZAX listed company whose auditor raised doubts as to Snakk as a going concern, issued a comical press release to the NZX called “Nothing to see here” earlier yesterday morning. The NBR, who has been investigating the auditors raising of Snakk’s risks, has the press release here.

Full marks for trying to engage in some desperate misdirection but Snakk addressed none of the questions asked by media.

It would seem the market is not buying Chairman Derek’s bluff and bluster, with the share price free falling by 8% on Monday and falling a further 5% more on Tuesday.

Here are some interesting questions for the media to ask of Derek Handley and Snakk:

Why won’t you answer the NBR’s questions?

Why did Chairman Handley cut his salary if everything is going swimmingly?   Read more »

Derek Handley is becoming the Terry Serepisos of tech

Derek Handley

Derek Handley

Derek Handley, the sustainability show pony, has some grim news for his shareholders at Snakk Media.

It seems the business may not be sustainable.

Auditors have highlighted a “material uncertainty” as to whether Snakk Media can carry on as a going concern, as it scraps plans for an ASX listing and plans to raise more money from shareholders.

The NZAX-listed digital advertising agency, which matches advertisers with mobile users, released its annual report to the stock exchange late Friday afternoon.

In the report, management says the company’s ability to operate as a going concern depends on its ability to achieve budgeted revenue and gross margins, whether it can finalise a financing agreement and receive continuing support from shareholders.

Auditors Staples Rodway highlight this, saying: “These conditions indicate the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern.”

The auditors suggest that if the company is unable to continue its operations, assets may need to be revalued and bank debt may need to be reclassified as short-term.

Handley and Snakk thought they might get away with releasing their annual report late on a Friday, hoping it might get ignored. I guess the NBR is wise to that trick.

According to the NBR, it looks like some of Snakk’s non-current liabilities might look more like current liabilities if these uncertainties should continue.  That sounds a lot like code words for the bank calling its debt in.

Derek Handley is the Terry Serepisos of tech, all piss and wind. After all, it’s not the first company he’s struggled with. He ran his old company Feverpitch, a failed online gambling company, into the ground back in 2003. The NZX wreckage mutated into a reverse listing before that, in turn, got delisted.

Investors in Snakk and believers of Handley’s hype-spraying might want to read the annual report very closely to make sure they are happy with Snakk’s big picture.

SkyTV will be sure to ask questions of Derek as well, since they, for some unknown reason, thought it a good idea to put Derek on their board of directors.

One thing’s for sure, we won’t be seeing Derek updating his own Wikipedia page with the news he might ruin his second listed company unless he finds some cash, pronto. Maybe instead of lecturing others he might listen to some wiser old hands about what business sustainability is all about.

 

– NBR

Media hoodwinked again, another undisclosed association with Kim Dotcom

This morning, Derek Handley, the chairman and boss of Snakk Media (a NZAX listed company) wrote a supportive piece about Kim Dotcom, published in the Herald.

Lots of altruistic mother and apple pie statements were spouted about internet freedom and privacy. But Handley may have now unwittingly overplayed his hand and connections to the convicted pump and dump fraudster.

You see, there are a number of people with close connections between Handley and Dotcom, which might require a little bit of attention, and perhaps some assurances by Handley if he wants his own listed tech company to be viewed as “above board”.

Firstly, we know that Kim Dotcom is working on a music service called “Baboom”. Baboom is its own incorporated company in New Zealand.

Directors of Baboom Ltd include already known Dotcom associates. A colourful investor, Michael John Sorensen, best known for his associations with penny dreadful companies and reverse listings is also a director of Baboom.

But what is this? Michael John Soreson is also balls deep within Snakk Media, Derek Handley’s company, owning around 12% of the company at one point through an entity called Snakk Trustee Limited.

Historic data for Snakk Media (not Snakk Trustees) shows that previous directors include past and current business colleagues of John Sorensen.

So there appears to be a slightly more than altruistic perspective here by Mr Handley. Kim Dotcom is actually thick as thieves with at least one of Handley’s business associates, the colourful John Sorensen. There are all sorts of rumours washing around about Kim Dotcom’s desires to put Mega and or Baboom on the NZX, in an effort to make him more established in NZ, and  that much harder to remove him. This includes Snakk being speculated as a possible merger candidate for Dotcom’s business interests, or other penny dreadfuls on the NZX that Sorensen and colleagues have connections with for a reverse listing.

Handley needs to come clean now on any business connections or deals being planned or discussed with Kim Dotcom and known business colleagues of Dotcom. Perhaps he might submit some assurances to the NZX and the Herald about this?

Until then though he can join the list of interested parties mouthing off support for Kim Dotcom with undisclosed baggage lurking in the background.

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We’re only a publicly listed online marketing company. Can’t be expected to have our online marketing in order.

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