Mobile commerce transactions software provider MoPowered Group intends to raise £3.5m but no placing price was mentioned.
At 20.25p, the current share price is barely one-fifth of the original 100p placing price at the end of last year. That placing raised £3.64m, or £2.9m net of expenses. MoPowered is currently valued at £3.22m so the fundraising will be highly dilutive.
MoPowered grew its interim revenues from £544,000 to £753,000 but that growth was much slower than originally hoped. Fees from new clients declined. There was a £1.8m outflow from operations during the period. Net cash was £638,000 at the end of June 2014 and most of that cash is likely to have been spent by now.
The cost base has been cut by around £100,000 a month. MoPowered beleives it could reach cash breakeven by the end of 2015.
The focus of the business is mid-tier retailers in the UK. A tie-up with a Netherlands reseller is being established. MoPowered intends to acquire the software assets of an app-building technology known as Cortana for £200,000. Cortana enables mobile sites to be constructed more quickly and it has previously been used under licence.
The finance director resigned in July and a replacement is being sought.
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