CHARLOTTE, N.C.-UpSnap Inc. generated a significant round of funding by going public earlier this week, the company said Thursday. According to documents filed with the Securities and Exchange Commission, UpSnap issued nearly 12 million shares of common stock for the initial public offering. At $2 a share-the stock’s opening price-the company appears to have generated more than $20 million by going public.
Shares of the mobile search services provider opened at $2 on the Nasdaq OTC exchange Monday, climbing to $3.22 throughout the week before settling at $2.68 by mid-day Friday. Like several other players in the field, UpSnap delivers local information to users who send a query to a short code via their mobile phone.
“This represents an important step towards our goal of becoming the top player in the mobile search market,” said Tony Philipp, UpSnap’s chief executive officer. “The new funding will allow us to innovate and create the best technology to help people on the move find-at no cost to them-the products, people and services they want.”
The company generates revenue by linking mobile users directly with vendors through a patent-pending Internet voice call-connection infrastructure. UpSnap compares the business model with established “pay-per-click” advertising services on the Internet.
