On 18 December 2018, Mobecom Limited (ASX: MBM) announced that it has completed the acquisition of 80% stake in Paid by Coins (a company which provides business to consumer solutions through its platform where customers can make use of cryptocurrency to pay utility bills or make payment to Australian bank account), which is a subsidiary venture company of Lakeba Group Pty. Ltd.
Lakeba Ventures made an issue of 35,294,118 fully paid ordinary shares at an agreed issue price of $0.17 per share to Mobecom Limited for which it received a payment of $6,000,000. Based on the Share Sale agreement between the two parties, Mobecom is determined to pay the deferred payment to execute the acquisition.
As per the agreement, Mobecom would have the option to acquire another 20% of the shares of Paid By Coins at a price which is in range of $1 million to $14 million depending on the performance of Paid By Coins post completion of the acquisition of 80% shares.
Neil Joseph, who the chief executive officer of Mobecom, is delighted to acquire 80% stake of Paid By Coins as he believes that introducing the platform of Paid By Coins to company’s product and business will help in increasing the momentum of the business and will also provide value to the shareholders of the company.
The company made a further announcement that to acquire 80% shares in Paid By Coins; it will issue 35,294,118 fully paid ordinary shares on 18 December 2018. The breakdown of these MBM’s shares will be 35,294,118 fully paid ordinary shares issued under MBM’s ASX Listing Rule 7.1 capacity and remaining 8,395,015 of the Consideration Shares issued under MBM’s ASX Listing Rule 7.1A capacity.
The company’s official listing date is 17 July 2008, and it has given an outstanding performance till the past five years. However, the performance of the company in last one year was -68.75%.
For the financial year ending on 30 June 2018, the company made a net loss of $12,141,841. The balance sheet of the company is not healthy as there is a deficiency in the net asset of the company. Also, the total current liabilities of the company are above the total current asset of the company which indicates that the company is not able to meet its short-term obligations and working capital requirements. Further, there is also a deficiency in the total shareholder’s equity.
By the end of FY2018, the net cash and cash equivalent of the company was $1,838,219. By the end of the trading on 18 December 2018, the market price of the share tumbled down by 4% which is 0.005 points below its previous day’s closing price. The last traded price of the share on 18 December 2018 is A$0.120 with the market capitalization of 12.34 million.