Shares of mobile search and content company UpSnap rose slightly after the company said it plans to merge with Mobile Greetings Inc.
Mobile Greetings creates and publishes greeting cards, animated clips and other applications for content partners such as Disney, Sony, Warner Bros. and Major League Baseball. UpSnap markets both branded and white-label services to carriers and content owners looking to incorporate text and streaming audio to existing offerings.
UpSnap has retained a placement agent to conduct a $3 million private placement of the company’s securities; proceeds will be used for working capital of the combined company. Mobile Greetings shareholders will receive shares equal to 50% of the common stock of the combined company under terms of the agreement, including shares underlying a $2.2 million convertible note being issued as part of the merger.
“Our media customers are calling for integrated mobile solutions that enable them to offer content and advertising direct to any mobile user,” said UpSnap CEO Tony Philipp. “By combining our . voice services with the innovative mobile platform provided by Mobile Greetings, we intend to provide a powerful set of services to any mobile user.”
Shares of UpSnap climbed more than 5% to 30 cents per share on the news. Mobile Greetings is privately held.