MySQUAR Ltd (LON:MYSQ), the Myanmar-language social media, entertainment and payments platform, is to raise £2.11mln through the issue of unsecured convertible bonds.
Atlas Capital Markets is buying the bonds, which carry a coupon of 5%, and will also be granted warrants that, if exercised, would raise a further £633,000 for MySQUAR in return for the issue of 20mln shares.
The company is in advanced discussions and negotiations for a potential acquisition or investment into a company that is developing mobile payment services; these services are expected to have synergies with applications currently being designed, developed and commercialised by MySQUAR.
"The fund-raise will provide MySQUAR with the necessary resources to undertake potential future acquisitions and investments with targets with valuable synergies with our strategy of developing the leading mobile payments facilities for remittances back into Myanmar,” said Eric Schaer, the chief executive officer of MySQUAR, adding that the funds raised would free up capital to invest in product development.
“We believe this can only strengthen MySQUAR's position in discussions with larger online groups interested in developing a presence in the Myanmar market," Schaer said.