Loss-making Cambridge-based mobile payments and analytics player, Bango, rather excited the market in recent months with the announcement of ‘relationships’ with Amazon (December 2011) and then Facebook (February 2012), the latter of which sent Bango’s shares soaring from around 75p to nearly £2 before settling back to 140p.
But in today’s treading update, CEO Ray Anderson reiterated that neither relationship has yet to generate any revenues to speak of, and that it was still too early to give any forecasts. This, and the continuing drain on cash, has led Bango to propose a placing of some 2.4m shares at 138p to raise £3m net. The funds will also be used to finance a new COO role, build Bango’s US presence, and forge more ‘relationships’.
Bango already has its products used by a number of marquee mobile and app store brands, but I’ll put my hand up and admit I don’t know enough about its business model (other than assuming they take a cut of each payment transaction) to take a view as to when the cash might start rolling in. Nonetheless, investors think the horse is well worth backing as Bango’s shares are up 11% to 157p as I write, so I really can’t see the placing having much trouble getting away.