Mobile Streams (MOS ), a mobile content and data intelligence company, announced the completion of a placing to raise £1.2m to support continuing growth, and specifically to enable further NFT (non-fungible token) contracts to be progressed. The placing was arranged by MOS' broker Peterhouse Capital.

A total of 666m ordinary shares have been placed at a price of 0.18p/share, representing a 33% discount to October 5th's closing price. Each placing share will be issued with a warrant to subscribe for another share exercisable at 0.3p for a period of 18 months from the date of admission of the new shares to AIM, expected on 12 October 2022.

The placing represents c. 13.4% of the new enlarged share capital of the company, and together with warrants if exercised, would represent c. 45% of its new issued shared capital.

Additionally, five directors and PDMRs proposed to subscribe for shares and warrants on the same terms as others investors, with a total subscription of £46,575 or 25.9m ordinary shares.

In order to provide existing MOS shareholders with an opportunity to participate on the same basis as the placing, MOS has granted Peterhouse Capital a broker option over another 111m shares. A full take up of these would raise a further £200K.

Mark Epstein, CEO, commented:

"It's great to have delivered our first of many NFT launches for Pumas. We are absolutely delighted with the results, the demand was in incredible and we can't wait to deliver more NFT drops very soon. Along with this we have also reached a milestone moment with the launch of our HeroesNFTclub marketplace. Where users can trade the NFTs they purchase from us. This puts us firmly into space of being both an NFT producer and marketplace. We expect this side of the business to grow rapidly and to include both MOS produced and other brand secondary NFTs."

 

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While the placing has resulted in a notable dilution of MOS' share capital, reflected in today's price movement, it ensures that the company's recent string of large NFT contracts continues. Over the past year, MOS has emerged as a major provider of licensed NFTs, with its NFT division expected to exceed all other revenue streams by end of FY23.

Last month MOS signed a US$3.7m contract with Mexico's Atlante FC, adding to recently finalised Pumas and Mexican National Team deals. In July, MOS announced two major NFT license deals with PAS Kisisel Asistanlik Hizmetleri and Andrea Olmedo Lopez. The company is in discussions for 30 additional NFT deals, and said in today's statement that several are expected to finalise this month.

MOS also recently launched its HeroesNFTclub marketplace where NFT cards can be purchased and traded. The platform can also place NFTs onto global marketplaces such as OpenSea. This effectively means that MOS is now both an NFT producer and marketplace provider, opening additional revenue opportunities.

As to how the aforementioned contracts are faring, on Tuesday MOS announced its first NFT "drop" (a launch of NFTs) for Pumas football club sold out in minutes. 4,300 cards, utilising 5 players, were sold from US$5 upwards. Total sales from the drop were in excess of $50K. In addition, MOS will receive 5% of any future resale value through its embedded NFT royalty.

MOS also said it experienced "just as strong demand" for its initial drop of Mexico National Team NFT cards.

In its FY22 update MOS reported revenue of £1.1m, an increase of 180% from £395K in FY21, with a strongly weighted 2H22 delivering revenue of £810K, a 270% increase YoY from £219K in 2H21. June 2022 alone returned revenue of £181K, representing a sequential monthly increase of 62% since MOS' last performance update on 1 March 2022. The strong trend of revenue growth is expected to continue into 2023.

With today's fundraise, MOS is well-funded to take up additional deals as the lucrative FIFA World Cup tournament approaches.

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