LONDON, UK: Mobile Streams plc, the AIM quoted mobile content and data intelligence company, has exercised its option to acquire the remaining 51% interest in KrunchData Limited on the terms previously announced on 25 March 2021.
The £765,000 consideration will consist of £265,000 cash and 166,666,666 in shares issued at 0.30p each, being the closing price yesterday, 17 March 2022.
On 25 March 2021, the Company announced the acquisition of 49% of Krunch for £735,000, comprising £500,000 cash and 90,384,615 Ordinary Shares issued at 0.26p each (being the closing market price on 24 March 2021), with an option to acquire the remaining 51% at any time in the next two years for £765,000.
As noted at that time, the rationale for the 2021 Transaction was to acquire the full rights to the expertise, systems, software and IP provided under licence by Krunch; to terminate the revenue share agreement, under which 50% of Streams Data revenues were due to be paid to Krunch from January 2022 for as long as the JV Agreement remains in place; and to eliminate the risk of Krunch being able to terminate the agreement at 90 days’ notice.
As noted above, the Company has exercised its option to acquire the remaining 51% interest in Krunch for £765,000, comprising £265,000 cash and 166,666,666 Ordinary Shares issued at 0.30p each (the “Consideration Shares”), being the closing market price on 17 March (together the “Transaction”).
For the year to 31 December 2021, Krunch generated revenues of £397k and a net loss of £85k.
Application has been made for admission of the 166,666,666 new Ordinary Shares which will rank pari passu with existing Ordinary Shares to trading on AIM (“Admission”), with Admission expected to be on or around 23 March 2022.
Bob Moore, Non-Executive Chairman, commented: “The Board is pleased to announce this transaction to acquire full ownership and control of KrunchData. KrunchData has provided the expertise, systems, software and IP which has enabled the Company to grow its Streams Data platform which supports the growth of our data insight, intelligence and visualisation services and marketing optimisation tools, as well as the growing content revenues from Esports and gaming”.