All we are saying is give Keek a chance

POSTED ON January 06, 2014 BY Tommy Humphreys
CATEGORY Investor Relations, LX Ventures, Resource Stocks, Technology, Web,

Keek.com, a Toronto-based video sharing service with sixty million users users worldwide (15 million of which are active monthly), burst onto the social media scene in 2011, tantalizing private tech sector investors with a billion dollar valuation trajectory.

Unfortunately, as Keek maneuvered to grow with an expanding global user base outside of North America and a social media market that was exploding, the company stalled due to funding shortfalls in 2013 after its $30.0 million in venture financing ran out.

Co-founder and then CEO, Isaac Raichyk, went on to butt heads with key investors on strategies to alleviate their financial worries until he finally resigned in October.

All was not lost for the company however. In November, Keek’s major shareholders found Mike Marradino and negotiated a merger with his shell company, Primary Petroleum, which has over $15 million in cash and is currently divesting the balance of its assets. Upon completion of the merger, Marrandino will take over the reins at Keek as as the new CEO.

The cash-rich Primary committed to a 1-1 stock swap that would end up with Keek shareholders owning 54% of Primary's outstanding shares. The transaction, still subject to regulatory approval, would create a combined entity with a possible $30.0+ million valuation when Keek comes public.

Mike Marrandino (linkedin)

Marrandino, a successful entrepreneur and opportunist with a knack for investor relations, has developed experience in the technology industry, highlighted by his co-founding of Chartwell Technologies in 2000, then worth $11 million. Chartwell pioneered browser-based gambling software and at its peak in late 2004 had a market cap. of over $200 million. It was eventually sold to Amaya Gaming in 2010 for approx. $40 million. Marrandino is excited by the opportunity of taking Keek to the next level as the company is considered to be cheaply valued based on per user metrics of other social media platforms such as Twitter and Facebook.

As CEO in 2014, Marrandino will enter into an investor marketing frenzy. On top of that, he intends to attack the year with the following strategies: continue to enhance the Keek Platform and app features, grow Keek’s global user base and engagement; diversify its celebrity social media influencers across multiple industries, including sports; secure global sponsorship partners for advertising revenue and performing acquisitions to enable better monetization of the service.

Even though it has been a rollercoaster year for the company, Marrandino is convinced the technical team is sound and that Keek can be re-started in a sector where public stocks have been burning up, most notably with companies such as Twitter, Facebook and local hero LX Ventures (Mobio).

If the reverse takeover gets TSX approval, it will be the first time Keek will have gone public and if Marrandino has his way, the billion dollar valuation dream will live again.

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

Twitter: @tommyhump

tommyhump@gmail.com

Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

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