Monitise to raise £32m; extends Visa deal
13 July 2010 | 10727 views | 0
UK mobile banking outfit Monitise has outlined plans to raise over £32 million in a share placing and subscription and extended its alliance with Visa.
The firm says it will raise £32.4 million through a fully underwritten placing of £23.6 million at 20.75p a share and subscriptions of £6.6 million by Visa and £2.1 million by First Eastern.
The deal increases Visa's shareholding in the company from 12.6% to 14.4% and is supplemented by a one year extension of the pair's global alliance to 2015. in addition, Elizabeth Buse, group executive, international, for Visa, joins the Monitise board.
Monitise says that with its live operations in the UK and US not needing investment, it will use the new funds to push its Asia Pacific and Indian ventures and expected launches in Africa later this year.
Meanwhile, the company says unaudited revenues for the year ended 30 June are around £6 million, up 120% on 2009.
Duncan McIntyre, chairman, Monitise, says: "The continued investment by Visa and First Eastern and the fully underwritten Placing announced today will enable Monitise to continue our strategy of developing our global franchise and expanding services in target markets as well as realising in full the opportunities created by our commercial and strategic relationship with Visa and our other partners."
Shares in Monitise were up two pence, or 9.5%, to 23 pence per share, in morning trading.