MySQUAR Limited ("MySQUAR" or the "Company")
Agreement to Sell Advertising on WeChat in Myanmar
MySQUAR, the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, is pleased to announce it has entered into a non-exclusive agreement to sell and promote WeChat advertising products and services in Myanmar (“WeChat Agreement”). The WeChat Agreement relates to advertisements from Myanmar based advertisers targeting mainland Chinese visitors to Myanmar and Myanmar resident users of WeChat.
WeChat is a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent, the multinational technology investment group. WeChat is one of the world's largest standalone mobile apps with more than 900 million daily active users (WeChat Data Report, November 2017) and is regarded by many as increasingly integral to the Chinese lifestyle. WeChat’s wide range of functions include mobile payments, with more than 600 million active users, and an instant translation feature covering more than 20 languages.
The WeChat Agreement was entered into by the Company with Hoi Li On International Limited (“HLO”), a wholly owned subsidiary of BlueOcean Advertising Limited (“BlueOcean”) which is WeChat Ecosystem Solution Provider for brands and merchants seeking to acquire and engage Chinese customers. BlueOcean is a “Tencent Official Institutional Partner” under a Global Advertising Licence made with Morespark Limited (a wholly owned subsidiary of Tencent Holdings Limited). Tencent Holdings Limited is quoted on the Hong Kong Stock Exchange (ticker 0700.HK) with a market capitalisation of approximately HKD 3,000bn (GBP 294bn).
In consideration of consultancy services relating to the introduction of BlueOcean to the Company and negotiation of the WeChat Agreement the Company has agreed to issue 17,471,657 ordinary shares of no par value to each of Sea Desert Holdings Limited and GP Holdings Desert Limited. Application (“Shares”) will be made for these shares, which will rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading on AIM. It is expected that admission will become effective and that trading in the Shares will commence on or around 12 October 2018 ("Admission").
MySQUAR further announces that Eric Schaer has resigned his positions as CEO and director of MySQUAR. Eric will receive 12 month’s salary in lieu of notice. The Company has recruitment search agents in place to identify a new CEO with the necessary experience and skills to take the Company forward. Eric’s primary role has been to identify products which the Company can monetise, and to raise the funds to develop them. His replacement will be tasked primarily with continuing to develop and build upon those products going forward.
In the meantime, Stephen Chong, currently COO of the Company (non-board role) has been appointed interim CEO and a director of the Company. In addition, the Company proposes to strengthen the Non-Executive board of the Company by the appointment of Stephen Austin as a Non-Executive Director. Following a career as a corporate lawyer, qualified executive and corporate stockbroker, Stephen is now the Chief Investment Officer of Plumtree Capital Limited, an FCA authorised corporate finance firm. Stephen will join the Audit, AIM Compliance and Remuneration Committees. Further details on Stephen are set out below. Stephen’s company, Plumtree Capital Limited, has previously provided advice in connection with previous fund raisings of the Company. He will recuse himself from decisions relating to financing where he may have a conflict.
Total Voting Rights
In accordance with the Company's Memorandum and Articles of Association, the Company hereby announces that following Admission it will have 908,526,180 Ordinary Shares in issue, none of which are held in Treasury. Therefore, the total number of voting rights in the Company is 908,526,180.
The above figure of 908,526,180 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Company's Memorandum and Articles of Association.
Piers Pottinger, Chairman of MySQUAR, commented:
“The Company is delighted to have secured an agreement to provide advertising services directed at users of WeChat in Myanmar. WeChat is the world’s most popular messaging service. This is a new and exciting new business line for the Company and, whilst revenues cannot be predicted, the Board believes that our relationship with Tencent and its partners is strategically important for the Company and we hope to build substantially upon it.”
“We are sad that Eric is moving on as he has worked tirelessly to develop the MySQUAR platform over the past four years. From preparing the Company for AIM to today’s announcement of our historic WeChat Agreement, his contribution has been invaluable. As the development phase of the Company draws to a close, the Company is seeking to appoint a new CEO with proven execution abilities to bring Eric’s strategy to fruition and in the meantime the Board is grateful that Stephen Chong has taken on the CEO responsibilities pro tem. We wish Eric success with his new ventures and welcome Stephen Chong and Stephen Austin to the Board.”
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information:
Stephen Chong (Interim Chief Executive)
Tel: +65 6725 6388
|SP Angel Corporate Finance LLP||Contact|
Nominated Adviser & Joint Broker
Tel: +44 (0) 20 3470 0470
|Daniel Stewart & Company Plc||Contact|
Tel: +44 (0) 20 7776 6550
Tel: +44 (0) 78 1677 0758
The information required by Schedule 2 Paragraph (g) of the AIM Rules for Companies in relation to the appointment of Stephen Michael Austin (aged 51) is as follows:
Plumtree Opportunities Limited
Plumtree Small Cap Credit LLP (as limited partner)
EC Acquisitions plc (formerly called Wisdom Acquisitions plc)
Amphion Innovations plc
Directorships with the past five years
The information required by Schedule 2 Paragraph (g) of the AIM Rules for Companies in relation to the appointment of Stephen Chong (also known as Chong Ee Yong) (aged 57) is as follows:
Pebble Bridge Pte Ltd
IWV (Singapore) Pte Ltd
Directorships with the past five years