By Geoff Percival
The directors of former Irish smartphone content supplier Zamano have tentatively agreed to a reverse takeover of the business.
The company, which has been looking at numerous investment options for some time, yesterday said it had rejected “a number” of investment proposals bar one, and has signed a memorandum of understanding with an unnamed party to acquire “certain operating assets in return for the issue of new shares in the company”.
The move will constitute a reverse takeover of Zamano and the new business intends to raise fresh capital to develop the company via a share placing. Existing Zamano shareholders will need to approve the proposal before it can proceed, and they can choose to keep their investment or cash out.
In its previous guise, Zamano provided messaging, advertising, and payment support tools to mobile communications providers.
However, it last year announced its intention to exit the market after regulatory changes heavily hampered its growth potential in the UK and other jurisdictions.
Latest accounts for Zamano show a fall from €32.1m to €4.3m in group turnover for 2017 and an operating loss of €1.3m, down from one of €5.2m the previous year.
If the reverse takeover were to fail to proceed, Zamano’s management will aim to distribute remaining cash
in the business to shareholders.
Zamano is classified as a cash shell company under London Stock Exchange rules and as an investing company under Irish Stock Exchange rules.