MOBS Mobestar

    


Mobestar Holdings plc
Peter Richards, Chief Executive Officer
Tel: 08454 900 565
or
Nominated Adviser
Dowgate Capital Advisers Limited
Liam Murray
Tel: 020 7492 4777



               Mobestar Holdings Plc (the "Company" or "Mobestar")

                       Issue of equity and trading update

Issue of equity

The board of Mobestar announce that it has raised �550,000 by the issue of
3,898,078 new ordinary shares in the Company, representing approximately 8.7 per
cent of the newly enlarged issued share capital of the Company. Each of the new
ordinary shares have a warrant attached allowing the holder of each new ordinary
share to subscribe for a further new ordinary share at a price of between 13 and
20 pence exercisable within two years of subscription.

The proceeds will be used to provide the Company with additional working capital
and development capital to enable it to accelerate its current products in new
markets.

Further to the announcement made by the Company 15 March 2007 in relation to the
acquisition of the trade and assets of Mobile Life for a cash consideration of
�350,000 the Company has subsequently agreed with the vendors to satisfy this
consideration by the issue of new shares in the Company at a price of 13 pence
per share to be issued in 2 tranches. Consequently, the Company has issued
1,346,154 new ordinary shares (representing approximately 3.0 per cent of the
newly enlarged issued share capital) to the vendors of Mobile Life. The balance
of the consideration for the Mobile Life acquisition will be made in June 2008.

Application has today been made for the 5,244,232 new ordinary shares to be
admitted to trading on AIM. The new ordinary shares will rank pari passu with
existing ordinary shares.

Following the issue of equity noted above the issued share capital of the newly
enlarged share capital of the Company comprises 44,845,722 ordinary shares of 1
pence each.

Trading update

In addition to the existing technology platforms (upon which the existing
applications mDate and mSpace are based) the Company has developed a
complementary suite of new technologies and services. As well as providing new
streams of revenues the new products are accelerating the number of paying
customers by offering them additional services i.e mobile marketing, advertising
and micro-billing. The net effect of these recent developments is that the
Company can now offer a fuller range of pre packaged services including:-

Mast provides high-volume, local area marketing linking Bluetooth devices with
end-users to support multiple campaigns

Morf ensures that all content served by the mobile phone for example picture,
text, video is automatically translated for each variety and make of handset

mCast provides multiple mass delivery of global marketing campaigns on the
mobile handset that can be delivered at any frequency and volume

Meter provides flexible micropayments with time-based charging process which
enables any customer to earn revenues but providing their product or service on
the mobile handset.

mDate

Following the installation of mDate, for Gaydar UK, which has been in commercial
use since August 2007, the Company has to date accrued net revenues of
approximately �50,000 in relation to this service. The take up of these services
is increasing as the subscriber base grows.

GaydarMobile, a white labelled version of mDate is now live in Australia and
Spain where the membership is priced at $9Aus (EUR 6) per month per member
respectively. Further rollouts of the mDate service are planned for South Africa
and Italy (both in May 2008), Holland (June 2008), Germany (July 2008), France
(August 2008) and Japan (September 2008). The combined existing membership all
of the territories listed is circa 3.3 million subscribers. Pricing will be
equivalent to the UK (circa. �4.50 per monthly subscription or an average of
0.5p for each piece of traffic (text, search, picture) as will the revenue share
arrangement with the customer of an equal 50/50 split.

On 22 April 2008 the Company agreed a contract with International Marketing
Concepts and Innovation (IMCI) from Voorburg, Netherlands to supply a white
labelled version of mDate to a number of their branded communities including
Beltegoed (http://www.beltegoed.nl) and Hotzornotz.( http://www.hotzornotz.nl/).
Revenues will be generated through subscriptions and pay-as-you-go (PAYG)
services which the Company will share on an equal basis with IMCI. The Company
expects the service to 'go-live' by the end of May 2008.

The Company has recently agreed with 3 (Hutchison) UK Limited ("3") to market
and promote Gaydarmobile service via 3's portal from where it can now be
subscribed to. This service went live in April 2008.

The Company has delivered "Singles365 Mobile", to Global Personals, the largest
white labelled dating organisation in the UK who manage more than 450
independent brands. Singles 365 has an estimated 500,000 UK members who can
subscribe on a 'pay-as-you-go' basis at a tariff of between 0.05p and 0.10p per
item of traffic for which the Company receives a 50 per cent. revenue share.

Singles365 will be the first dating brand owned and managed by Global Personal
to 'go live' which is planned for commercial release in April 2008. The Company
anticipates a roll out to other brands under the Global Personals management.

mCast

mCast has been delivered to the first customer - Bonefish Limited
(www.dating-central.com). Bonefish is a white labelled dating provider who will
use mCast to broadcast daily marketing messages to their customer base of over
one million members. Each 'read' message will generate 0.50p for which Mobestar
earns 60 per cent.. It is anticipated that this service will commence in April
2008.

MORF

Mobestar has been contracted by Project People (www.projectpeople.com), one of
the UK's leading consulting and recruitment providers, to provide an online
timesheet system using MORF allowing notifications via SMS and viewing and
approval of timesheets directly from the mobile phone. Revenues of approximately
�9,000 per month are currently being generated through this contract.

General

Although the take up of the core products has been slower than anticipated the
Company is now experiencing a steady growth in its customer base and subsequent
revenue streams.

The board is pleased with the current uptake and acceptance of its current
offerings and remain confident as to the Company's commercial success.

Mobestar (LSE:MOBS)
Historical Stock Chart
From May 2024 to Jun 2024

Mobestar (LSE:MOBS)
Historical Stock Chart
From Jun 2023 to Jun 2024