StockMarketWire.com - Mobile Streams has reached an agreement to acquire a 49% interest in KrunchData for £735,000, comprising £500,000 cash and 90,384,615 Ordinary Shares issued at 0.26p each.

The deal also gives Mobile Streams an option to acquire the remaining 51% at any time in the next two years for £765,000.

As part of the transaction, it has been agreed that the revenue share agreement, under which the company currently receives 100%, reducing to 50% from January 2022, of the revenues from Streams Data, will be terminated immediately.

On 22 November 2019 the then board of Mobile Streams signed a joint venture agreement with Krunch. The key commercial purpose of the agreement was that Krunch would provide the expertise, software and systems under licence to enable the company to build a second, complementary, revenue stream and to examine whether value could be extracted from the Company's existing client data.

The Streams Data business, which comprises the bespoke data insight, intelligence and visualisation service provided under the JV Agreement, achieved first revenues in June 2020, and the Streams SaaS platform generated initial customer revenues in October.

As announced on 15 March, it is estimated that the Streams Data business will generate around £15,000 in monthly revenue for March, with revenues expected to increase to an estimated £25,000 per month, an increase of 178% since December, following the contract with Quanta Media Group Holdings announced on 18 March .

The existing JV Agreement commits Mobile Streams to pay Krunch for client set up costs, the costs of data clean-up and agreed software development at cost , but leaves itvulnerable to Krunch being able to terminate the agreement at 90 days' notice.

Following termination, the company would retain the rights to customer/client data, but not to the systems, software and IP licensed to it by Krunch and therefore would be unable to continue operating the Streams Data business without significant further investment.




At 8:53am: [LON:MOS] Mobile Streams PLC share price was 0p at 0.26p



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