Seamless announces shareholders’ support for share issue
The Board of Seamless Distribution wishes to express its gratitude to the Company’s four largest shareholders, including the Chairman John Longhurst (together representing over 30 % of the Company’s share capital), who confirm their support (and intention to provide written undertakings) for the proposed rights issue, and their support for the strategic initiatives announced by the Board of Seamless, in our press release last week, and in the coming days in a call for an EGM.
I wish to take this opportunity to apologise to our shareholders. An investment in Seamless Distribution over the past three years has delivered a significant decline in value. Since new Chairmanship in April 2017, and in particular, senior Management changes announced this summer, the new CEO and Board have had to contest with the tough reality they inherited. SEQR has failed to deliver on expectations, and it is no longer feasible to offer a broad range of mobile wallet services and fund the associated cash burn.
The proposal to seek via EGM support for Seamless to focus on our B2B offering has come after an analysis of our expected financial resources. We recognise that many shareholders in Seamless have invested primarily on the basis of anticipated B2C success for SEQR. However, in B2B, our MeaWallet offering is demonstrating accelerating traction, and we believe that this will be a key driver of the company’s ability to move into profit before the end of 2018.To improve investor confidence, we must and will demonstrate that we do indeed have profitable traction in this activity. Also, the eProducts division has been restructured and is on course to move firmly into profit in the period ahead.
With EGM approval, Management will move quickly to stabilise the company, complete the rights issue funding, execute our strategy, and deliver a sustainable improvement in performance.
The spin-out of SDS this summer, and proposed exit from B2C will result in a significantly slimmed down company entering 2018, compared to the one that entered 2017. The Board is grateful for the public support expressed today by the Company’s largest shareholders, and also to Seamless employees, as we move beyond this difficult period and navigate a path that we believe offers the most favourable risk-reward going forward.
John Longhurst, Chairman of the Board
For further information, please contact:
John Longhurst, Chairman of the Board, john.longhurst@seqr.com, +46 8 564 878 00
This information is information that Seamless Distribution AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at CET 08:50 on October 24, 2017.
About Seqr
Seqr is the standard way to pay. Developed by Seamless, Seqr is the safe, fast and easy way to pay by mobile. The only thing the user needs is the Seqr app to scan a QR code or tap on the NFC terminal. Globally, over 30 million contactless card terminals now accept Seqr. The low investment and transaction fees for merchants and among others ensure that Seqr is one of the most widely used mobile payment solutions in Europe. www.seqr.com
About Seamless
Since 2001 Seamless has been providing its proprietary solutions and systems for mobile phone transactions. Seamless operates in two main business areas; mobile phone payment solutions (provided through the brands SEQR© and MeaWallet™) and distribution of e-products. www.seamless.se
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