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Of Snap is to raise $1 billion to invest in AR and potential acquisitions

FILE PHOTO: A woman stands in front of the logo in a Snap, Inc. on the first floor of the New York Stock Exchange (NYSE) while waiting for the Snap, Inc. in order to post to their initial public OFFERING in New York City, NY, USA, 2nd March 2017. REUTERS/Lucas Jackson/File Photo

(Reuters) – Snap-Inc. on Tuesday said it will raise about $1 billion in short-term debt, and plans to invest in media, content, augmented reality features, you can also buy them from other companies.

The parent company of the popular disappearing messaging app, Snapchat has a new lease on life with the growth of the end-user and the market price, after the rough end of 2018. It was introduced to mobile gaming within Snapchat and it has developed, as its name suggests, features such as lenses that overlay with bunny ears in a photo, the user will be faced with competition from larger platforms, such as Facebook Inc. as well as newer social media apps, such as the TikTok.

“We will continue to focus on the development of content, gaming, and augmented reality platforms for improving the quality of the Snapchat experience for our community,” Snap’s Chief Executive Evan Spiegel said in a memo to employees seen by Reuters.

The Snap offer for $1 billion in convertible notes due in 2026, at which time you will have to choose to pay out to investors in cash, shares or a combination of the two.

The mirror said that the current low interest rate environment, the Module also provides an opportunity to complete the offer. He pointed out that investor demand for convertible bonds has been strong, adding that the company expects the fundraising will close later this week.

The shares of the Snap and were down less than 1% at $16.36 in morning trading.

Report by Sheila Dang; Editing by Dan Grebler

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