(Alliance News) - Mobile Streams PLC said Wednesday it plans to raise GBP250,000 through a placing, which will go towards providing working capital.
The mobile content distributor will place 221.2 million shares at a price of 0.113 pence per share.
Shares in Mobile Streams - which is headquartered in London - are currently suspended, following the resignation of nomad and broker N+1 Singer Advisory LLP in September.
The placing is conditional on gaining shareholder approval at the company's annual general meeting on November 26.
Proceeds from the placing will go towards funding the marketing and development costs of a joint venture with business intelligence and insight platform Krunch.ai, increasing Mobile Streams's marketing budget and provide working capital.
Mobile Streams said it has reached an agreement in principle with Krunchdata Ltd, owner of Krunch.ai, for Mobile Streams to licence the platform on a revenue share basis.
Specifically, in the first 12 months, Mobile Streams will retain all incremental revenue generated by its partnership with Krunch while paying it the standard client set-up fees.
As part of the deal, at the meeting Mobile Streams will also propose that Krunch's founders will join the group's board, with Mark Epstein as chief operating officer, while Tom Gutteridge and Annabel Jamieson join as part-time employees.
In addition, Mobile Streams will propose the appointment of Nigel Burton as chair and Charles Goodfellow as non-executive director.
Finally, Mobile Streams has arranged to appoint a replacement nominated adviser to N+1 Singer, which is expected to take effect on November 27, once all resolutions at the meeting are approved.
Should this take place, Mobile Streams's shares will resume trading on that date.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Mobile Streams (MOS)