29 July 2016
Find out more

Monitise confirms placing, acquisitions and delay to break even

04 December 2012  |  6832 views  |  0 fingers using Tablet with graphs

UK mobile banking outfit Monitise has kicked off a £100 million share placement as the company provides news of two acquisitions and warns of further delays in its quest to hit break-even.

Monitise has contracted with Cannacord to raise the extra cash through an agreed 30 pence per share deal with Institutional investors for £34.2 million, with the remaining two-thirds raised through a partially underwritten conditional placing.

The firm says the funding round will enable it to take advantage of "significant opportunities represented by mobile banking, payments and commerce".

Further advancing its strategy, Monitise has agreed to buy out the remaining shares of loss-making mobile check-out apps firm Mobile Money Network Limited in a £15m all share deal valuing MMN at £30 million, and acquired mobile point of sale firm eMerit Solutions for up to £2.5 million.

MMN made a loss of £1.89 million for the 72 week period ended 30 June 2011. No figures are available for eMerit, but the company is joining an increasingly crowded market hawking Square-alike mobile Chip and PIN card readers.

On the international front, the Movida joint venture between Visa and Monitise expects to announce the launch during the coming weeks of new mobile payments services for HDFC Bank, the second-largest private bank in the country. These will allow users to pay bills, buy tickets, and top up airtime with any mobile phone. Additional banks and services are "expected to go live in the coming months".

The firm says it is also in "advanced discussions" with Bank of China (Hong Kong) regarding a strategic partnership to develop a range of new mobile payments services through its Monitise Asia Pacific joint venture.

Whether this 'jam tomorrow' strategy will appease investors is another matter, as the firm reneges on its earlier promise to reach cash break-even by 2013, stating simply: "Proceeds from the Placings are expected to drive substantially increased revenue expectations over the next 2-5 years and lead to only a slight delay in near-term profitability."

Shares in the vendor slipped by 8.2% to 30.25 pence from an overnight close of 33 pence.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Monitise in talks to raise £100m

Monitise in talks to raise £100m

29 November 2012  |  6970 views  |  1 comments | 5 tweets | 3 linkedin
Monitise FY losses widen despite revenues doubling

Monitise FY losses widen despite revenues doubling

04 September 2012  |  5227 views  |  0 comments
Monitise agrees Clairmail acquisition

Monitise agrees Clairmail acquisition

26 March 2012  |  7556 views  |  0 comments
Visa Europe takes stake in Mobile Money Network

Visa Europe takes stake in Mobile Money Network

07 March 2012  |  8594 views  |  0 comments
Visa and Monitise partner HDFC on Indian mobile money

Visa and Monitise partner HDFC on Indian mobile money

22 February 2012  |  11539 views  |  0 comments
Monitise considers Nasdaq listing - FT

Monitise considers Nasdaq listing - FT

14 February 2012  |  4896 views  |  0 comments
Visa launches mobile services for US financial institutions

Visa launches mobile services for US financial institutions

09 February 2012  |  7796 views  |  0 comments
Monitise and Best Buy Europe JV launches mobile checkout service

Monitise and Best Buy Europe JV launches mobile checkout service

04 November 2011  |  7753 views  |  0 comments
Visa Europe invests £24.7m in Monitise

Visa Europe invests £24.7m in Monitise

31 October 2011  |  11407 views  |  0 comments
Monitise forms mobile money network with Best Buy Europe

Monitise forms mobile money network with Best Buy Europe

16 November 2010  |  8746 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit VocaLink.comVisit capgemini.com

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9606 views comments | 10 tweets | 4 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6819 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6012 views 0 | 6 tweets | 8 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5973 views comments | 13 tweets | 14 linkedin
Finextra paper explores blockchain as an enabler of operational resilienceFinextra paper explores blockchain as an e...
5414 views comments | 12 tweets | 9 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job