Bango raises £3m in share placing to accelerate payments to content providers
Bango plc, the mobile web payments and analytics company, said it has raised a net £3m through a conditional placing of 7.5m shares at 43p each.
The Company said the funds will be used to accelerate payments to selected content providers ahead of receipt of funds from network operators. The Board believes this service will provide additional percentage margin for Bango, will enable customers to grow content related businesses faster, and will encourage the transfer of business to Bango.
CEO Ray Anderson said: "We believe that the mobile content market is at an exciting point in its development, with large, global companies now utilising the mobile internet to connect with their customers.
"With a mobile internet payment and analytics platform, we believe that we sit at the heart of this industry, with the capacity to facilitate valuable interactions between content providers, mobile network operators and their customers".
He said Bango had got strong support from both current and new institutional investors.
Bango said its technology and relationships have been developed such that they have the ability to enable the processing of significantly higher volumes of transactions than are currently flowing through the Bango platform without increasing operating costs.
The Board is focused on increasing transaction volumes to leverage this situation, and the availability of additional capital will facilitate this. The Company has a debt facility with the Royal Bank of Scotland which provides the ability to accelerate funds at increased margin on a month by month basis. The Directors believe the ability to enter into longer term relationships with content providers, underpinned by the availability of the Company's own capital, will be beneficial to the growth of volumes and margins.
The placing price was at a discount of around 9.5% to the mid-market closing price of 47.5 pence per s on 9 December.
The Placing Shares represent about 21% of the enlarged share capital.
The Cambridge-based company share price was down over 5% on the news. Its market capitalisation is now around £12.8m.
