Shares of Mandalay Digital Group Inc. rose more than 13 percent on Monday after the company announced a reverse stock split and said two directors invested an additional $1 million.

The Miracle Mile mobile technology company said board members Peter Guber and Robert Ellin, through their Trinad Capital Master Fund, each invested $500,000 in new common equity. Gruber and Ellin were already the largest non-institutional investors in the company, which trades on the Over-the-Counter Markets and has a market cap of about $43 million.

The number of shares of common stock has been reduced from about 101 million to 20 million. Mandalay Digital said the one-for-five reverse split, which took effect today, was designed to help meet Nasdaq listing requirements. The company has a Nasdaq application pending.

Chief Executive Peter Adderton said the company used the new capital to help fund the cash component of its $7.2 million cash-and-stock acquisition of Australian mobile technology provider Mia, which was announced late Friday. The company expects Mia to add about $13 million in revenue over the next 12 months.

"This latest financing reflects the continuing commitment of our board to the execution of Mandalay Digital's growth strategy," Adderton said in a statement.

Mandalay sells a mobile services platform that provides mobile operators and third-party publishers with portal management, user interface, content development and billing technology. Mia technology should enable those customers to better use multiple mobile operating systems across multiple networks, while maintaining their own branding and customer relationships.

The company's common stock began trading today on a split-adjusted basis under the ticker symbol MNDLD, which will continue for the next 20 days. Shares closed at $5, up 60 cents, or 13.6 percent.