Investment in Mobnotes
7 March 2011
Brainspark plc
("Brainspark" or "the Company")
Investment in Mobnotes S.r.l.
Brainspark plc (AIM: BSP), a fast growing international investment company, announces that it has entered into a contract to acquire 30 per cent. of the issued share capital of Mobnotes S.r.l. ("Mobnotes"), an Italian mobile location based application company.
Under the terms of the agreement Brainspark has agreed to pay a total consideration of EUR 600,000, of which EUR 300,000 will be payable in cash over a 12 month period. The first instalment of EUR 50,000 has already been paid. The remaining EUR 300,000 consideration will be paid in Brainspark ordinary shares, calculated at the average share price over the 30 day period to the end of March 2011.
Mobnotes has seen a rapid take up since its inception, with more than 150,000 registered users in Italy, working in conjunction with the major mobile handset manufacturers and networks. In 2008, the company was a finalist of the TechCrunch50 (San Francisco), being selected for the international contest, out of a field of 1,500 other start-ups.
The company provides geo-social network services allowing users to locate nearby friends, shops, restaurants, etc. and send notification if desired. Mobnotes also links into various social networking sites to identify the location of friends. The company generates revenue through mobile advertising and custom co-branded solutions for platform licensing due to the unique dimension provided by its localisation services.
Mobnotes expects revenues of EUR 590,000 in 2011, which is expected to rise to over EUR 2.5 million by 2012, and is forecasted to become profitable in 2012, with an expected EBITDA of EUR 650,000, demonstrating its excellent growth prospects.
Alfredo Villa, Chairman and CEO of Brainspark, commented, "Mobnotes is a very exciting acquisition for us as mobile geo-localisation services are very much the future of mobile advertising. We also believe that the many synergies it shares with Bibop and the Mycast platform will bring in additional revenues."
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For further information please contact:
Brainspark plc +39 347 66 20 664
Alfredo Villa, Chairman and CEO
Arbuthnot Securities +44(0) 20 7012 2000
Antonio Bossi / Ed Groome
Leander PR +44(0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark Plc
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. Its core investment is B'Parks & Leisure, the owner of a site in northern Italy with plans for the development of a large theme park. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.
This information is provided by RNS