Now: Monitise has gone to shareholders with a £31m cash call just days after we flagged that likelihood in our buy tip just a week ago.
US credit card giant Visa is ploughing £6.6m in itself, taking its stake from 12.6 to 14.4 per cent. With a new market value of around £145m, Monitise should have the cash to see it through to breakeven. The company made £6m of revenue in the year to 30 June 2010, of which £4.3m was in the second half, demonstrating its rapid rate of growth.
The cash call and backing from Visa is a ringing endorsement of Monitise. Start-up costs in Asia-Pacific will likely anchor the soon-to-be cash generative UK and US operations in the short term, but rapid transaction revenue growth is starting to show the commercial potential of mobile banking.
When: 9/07/10
Price: 20p
Performance to date: +15%