MySQUAR Limited (LON:MYSQ), the Myanmar-language technology company is to sell and promote WeChat advertising products and services in Myanmar.
WeChat is a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent, the multinational technology investment group.
WATCH: MySQUAR team on CEO search and new WeChat deal and mobile money app
MySQUAR’s agreement with WeChat relates to advertisements from Myanmar based advertisers targeting mainland Chinese visitors to Myanmar and Myanmar resident users of WeChat.
The deal was brokered by Sea Desert Holdings and GP Holdings Desert, both of which will receive 17.47mln MySQUAR shares for consultancy services.
"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," said Piers Pottinger, the chairman of MySQUAR.
Chief executive officer quits
The company also announced that chief executive officer has resigned his positions as the chief executive officer (CEO) and a director of the company.
Stephen Chong, currently the chief operating officer of the company, has been made a director of the company and has been appointed as the CEO on an interim basis.
Stephen Austin, the chief investment officer of Plumtree Capital Limited, an FCA authorised corporate finance firm, has been appointed as a non-executive director.
"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, Pottinger said.
“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,” Pottinger added.
Schaer’s departure follows a trading update issued last Friday at 4.30pm that revealed loss for the year to the end of June is expected to increase substantially as a result of the acquisition costs of MyPay Myanmar, amortisation charges and the one-off costs of staff rationalisation, management changes and fundraising expenses.
READ MySQUAR raises £2mln to fund acquisition of mobile payments systems group MyPay Myanmar
Revenue in the year rose by 74% from the year before to US$1.84mln, with a slight increase in the second half from the first half of the year.
Total monthly revenues in July and August 2018 were in line with last year's monthly games revenue average of MMK 171k; however, since the end of June 2018, the kyat (MMK) has depreciated by 13% against the US dollar.
As at the end of June, the company’s cash pile stood at around US$2mln.
"We've been encouraged that our games revenues have grown significantly in the 12 months to 30th June 2018 and steps have been taken to mitigate the loss going forward,” Schaer said.
“The board has been working hard to deliver new revenue lines and looks forward to providing further updates to shareholders in the near term," he added.