MySquar acquires Myanmar-based payments business
AIM-quoted social media platform MySquar launched a fundraising on Wednesday, shortly after agreeing to acquire MyPay Myanmar for £2m in cash and shares.
MySquar will acquire the payments business in order to develop its smartphone payments systems, something the firm anticipates will provide it with "substantial" revenues moving forward.
The firm will pay half of the £2m consideration in cash and will satisfy the remaining 50% by issuing 72.5m shares to MyPay
In an effort to bolster its balance sheet, the firm also agreed to issue £2.2m in bonds to Atlas Capital Markets.
Eric Schaer, MySquar's chief executive, said, "Having now deployed the capital raised from the first issue of convertible bonds to Atlas in providing the balance of funds for acquiring MPM and funding the working capital requirements of the company and its development programme, we have raised further capital to continue to invest in our Myanmar local language social media network and in particular our mobile payments application."
"The acquisition of MyPay Myanmar enhances our drive to be the leading directly regulated mobile payments facility for remittances back into Myanmar," added Schaer.
As of 1130 BST, MySquar shares had sunk 10.53% to 1.36p.