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Shares of Mobile Streams (LON: MOS) are up over 1% on Wednesday after the company said that initial work with Quanta Media Group “has uncovered significant additional areas of synergy and opportunity.”
Quanta, a developer of sports and iGaming products, is an early-stage business based in London.
Mobile Streams announced on March 18th that it had signed a contract with Quanta for them to use the Streams data platform. However, today the companies said they have found multiple opportunities to drive revenue growth via the partnership.
It is now likely that Mobile Streams will drive extra revenue from its legacy business, whilst Quanta has also confirmed it can utilise its iGaming platform to drive additional revenue from the legacy MOS IP, including mobilegaming.com.
To develop the opportunities and advance Quanta’s business plans, Mobile Streams said it is providing Quanta with a convertible loan note of £250,0000, with a further £250,000 to be made available subject to achieving certain milestones, centred around its entrance to critical markets.
The loan accrues a 5% interest per year and can be converted into ordinary shares in Quanta.
“We are delighted to be expanding our partnership with Quanta,” said Nigel Burton, non-executive director of Mobile Streams.
“We feel there is significant scope to grow the business quickly and we are focused on delivering that growth as quickly as possible. This deal will enable us to leverage our legacy assets and platform faster than previously thought and deliver even more value into the business,” added Burton.
Mobile Streams share price is up 2.73% at 0.252p following the announcement.
Mobile Streams shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Mobile Streams shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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