Bango raises £2.4m at a premium

Mobile payments and analytics provider Bango is raising £2.4m in cash at a premium to last night's closing share price. The new shares are being issued at 135p each, compared with a closing price of 131.5p. The share price has gone to a premium to the placing price today. Bango says that there was demand from new institutional investors as well as existing shareholders.The cash will be used to boost the balance sheet. The stronger cash position will help in negotiations with mobile phone networks and App store operators. Bango already has an agreement with RIM to provide carrier billing for BlackBerry App World. This means that any Apps bought are paid for on the mobile phone bill.Net cash was £1.16m at the end of September 2010 Bango reported a near-doubled loss of £458,000 for the six months to September 2010. It had already warned that it was going to miss profit forecasts for this year because of lower than expected revenues. House broker Cenkos expects Bango to make £300,000 profit in 2010-11. This would be the first profit since it floated. Bango