The Board of Seamless Distribution today announces that it considers to present proposals in two areas that are intended to accelerate profitable growth, and focus on activities with the highest probability of success. The proposals that are up for considerations are the following:
1. Phasing out of the B2C offering SEQR, and a renewed focus on B2B offerings, where traction is both strong and accelerating. Phasing out the B2C offering SEQR would preferably be made in the form of a sale or winding-down.
2. To fund the growth of B2B, and exit costs of B2C, the Board considers to propose the launch of a rights issue, to be completed before year-end 2017, with the goal to raise Sek100m with the following indicative terms:
. Shareholders in the company on the record date of the issue will receive 1 subscription right for each holding in the company.
. One subscription will entitle the holder to subscribe for 1 share for 1.80 SEK per share.
The proposals up for consideration are based on the following:
. The consideration of phasing out SEQR is based on a thorough analysis of competitive advantage and highest probability of success factors. By eliminating the highly cash consuming B2C offering, the company would be able to both bring forward its move into profits, and to focus on the activities where our competitive advantage is most obvious, and sustainable.
. With a pure B2B focus, Management and the Board believe that Seamless’ shareholders would gain exposure to rapid growth, with lower risk.
. MeaWallet has proven traction, and is experiencing an accelerating pipeline. MeaWallet is forecast to move into a clear profit making position during 2018. Capital raised from a rights issue would be primarily directed to funding expanded production and sales capacity in MeaWallet.
. eProducts, currently the company’s largest revenue generating activity, has been restructured and refocused after a sustained period of losses. Under new leadership, and with a refreshed product portfolio, we see a rapid move into profit, and sustained high return on invested capital going forward.
. Following a rights issue, Seamless would improve an already strong balance sheet, and in possession of substantial realisable financial assets. These funds would enable the company to move more quickly into profit, and to a position of sustainable positive cashflow generation.
The Board’s considerations may include elements which are subject to approval by the shareholders and may be subject to certain revisons and amendments. The Board intends to make a call for an EGM within the coming two weeks, where the considered proposals will be presented more in detail as appropriate.
About Seqr
Seqr is the standard way to pay. Developed by Seamless, Seqr is the safe, fast and easy way to pay by mobile. The only thing the user needs is the Seqr app to scan a QR code or tap on the NFC terminal. Globally, over 30 million contactless card terminals now accept Seqr. The low investment and transaction fees for merchants and among others ensure that Seqr is the most widely used mobile payment solution in Europe. (www.seqr.com)
About Seamless
Since 2001 Seamless has been providing its proprietary solutions and systems for mobile phone transactions. Seamless operates in two main business areas; mobile phone payment solutions (provided through the brands SEQR© and MeaWallet™) and distribution of e-products. (www.seamless.se)
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
