Cash and Promise for Phorm

Behavioural targeting pioneer Phorm has raised a further £10m in funds via a placing of convertible secured loan notes with new and existing investors; and says initial results from its first Brazilian paid campaigns are promising.

The process involves cancelling an existing £6.075m of loan notes and issuing new ones. Investors include companies from some of the company's key strategic target markets in Asia; and existing investor, UK-based Blackrock Investment Management which is putting £1.2m into the notes.

Phorm says its user base in Brazil has reached a sufficient size to allow advertising to be shown on a commercial basis, and has successfully delivered a number of advertising campaigns with 'extremely encouraging' results. These show the essential soundness of its business model, says Phorm, and enable it to check its assumptions and forecasts on opt-in rates, pricing, access to inventory, achievable margins and delivery of both text and display advertising formats.

Payment is coming in for the firm's initial campaigns, and advertisers are re-booking with substantial growth likely over the coming months, according to Phorm. Chairman and CEO Kent Ertugrul cautions that 'the business in Brazil is still at an early stage' but says the results from it 'will have a significant positive impact on business development efforts globally, and particularly in Asia.'

Phorm is incorporated in Delaware, USA, has offices in Seoul, Moscow, Sao Paulo and London and was admitted to the AIM market of the London Stock Exchange in 2004. Web site: www.phorm.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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