UK-based ROK Entertainment Group has floated on the US OTC stock market for $1 billion (£480,000,000).
The deal was completed at 11pm yesterday (November 14). About 50,000,000 shares have been distributed among existing company shareholders, at a share price of $US20.
ROK currently has three registered patents and 42 additional patent applications pending for the delivery of video entertainment to mobile phones.
ROK’s portfolio includes on-demand mobile TV service ROK TV and music download and storage application ROK Media Store. ROK’s own advertising-funded, youth targeted MVNO ROK Mobile will launch soon in the US following the purchase of advertising provider Xero Mobile last month.
ROK TV and Media Store are available directly to consumers for a subscription. There are also network relationships in place in Thailand, India, Pakistan, Turkey and South Africa.
The OTC float will strengthen ROK’s global rollout strategy, which includes mass penetration of ROK TV and increased partnerships with mobile networks and handset manufacturers.
ROK chief executive officer Laurence Alexander said: “The demand for mobile content is set to grow exponentially over the next decade. As an enlarged group with access to public markets and a proven management team, ROK is well placed to exploit these trends for delivering shareholder value.
“We have achieved a lot of organic growth but we have been working on our merger and acquisition targets at the same time. And investors feel more secure investing in a public company. This will give us the ability to expand our business faster.”
Alexander said the next stage of ROK’s growth would be to enter a UK stock market, but currently opportunities were “wide open in the States”.