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MGM Wireless (ASX:MWR) to sell SPACETALK in Vodafone stores

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MGM Wireless (MWR) has entered a sales agreement with leading mobile network operator, Vodafone Australia to sell the SPACETALK smartwatch in Vodafone’s stores.

SPACETALK is a mobile phone built into a smartwatch and is designed for primary school aged children.
It’s described as a safe-to-use device that allows two-way phone calls and messaging for children and their parents and guardians. It doesn’t, however, give children access to social media, apps or internet browsers.

“For the first time, Australian parents will be able to purchase SPACETALK with a mobile plan for one affordable monthly fee. It’s a simple, one-stop solution to keep kids safe and families connected,” MGM Wireless CEO Mark Fortunatow said.

Since it was launched in 2017, SPACETALK has proven successful. Major chains such as JB Hi-Fi, The Good Guys, Officeworks, Kogan, Harvey Norman, and more, have boosted online sales significantly.

Not only have retail chains sold SPACETALK, but mobile network operators such as Sky Mobile and Spark New Zealand, have sold the device on monthly plans.

“This landmark agreement recognises the rapid emergence of a responsible and practical solution for parents to stay connected with their children,” Vodafone Head of Devices Ian Walls said.

Significantly, Vodafone will be the first Aussie telco to sell SPACETALK through its retail stores. Vodafone will offer SPACETALK with its Red Wearable plan for one affordable monthly plan fee.

Customers will also need to download MGM’s AllMyTribe app which can be found on the Apple App Store or Google Play. They’ll pay a monthly subscription fee of $5.99.

All device testing and certification with Vodafone has been completed to ensure SPACETALK has no technological issues.

SPACETALK is expected to be launched across Vodafone stores in early August.
Company shares have soared 20.8 per cent after today’s news and are trading for 14.5 cents each at 10:27 am AEST.

Originally posted: https://themarketherald.com.au/mgm-wireless-asxmwr-to-sell-spacetalk-in-vodafone-stores-2020-06-30/

MGM Wireless (ASX:MWR) taps investors for $1.5M, gears up to launch senior smartwatch

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Education tech specialist MGM Wireless (MWR) has launched a $1.5 million share purchase plan to grow its SPACETALK business.

Under the capital raising plan, eligible shareholders will be able to apply for up to $30,000 worth of MGM shares at 10.75 cents each — representing a 23.2 per cent discount to the company’s last closing price and a 10 per cent discount to MGM’s five-day volume-weighted average price.

MGM said its SPACETALK children’s mobile phone watch has seen “phenomenal” success since it was launched in 2017.

The product is a two-in-one watch and smartphone that allows parents to stay connected to their children at all times but without the risks associated with a conventional smartphone.

While the watch allows a child to make and receive calls and text messages just as an ordinary phone would, SPACETALK has no social media, no apps, no camera, and contacts can be monitored by parents.

Moreover, it comes equipped with GPS tracking so a parent can always know where their child is. MGM says SPACETALK is the ideal first phone for kids between five and 12 years of age.

Along with online sales, the product is now sold in retailers such as JB Hi-Fi, The Good Guys, and Officeworks. According to MGM, SPACETALK revenue increased by 87 per cent over the first half of the 2020 financial year compared to the previous corresponding period.

Today’s capital raise will help expand the SPACETALK product more, with a new version of the device being created specifically for seniors. The new product, combined with a new model of the current children’s product, has the potential to double MGM’s overall revenue, according to the company.

MGM CEO Mark Fortunatow said today’s share purchase plan is an “attractive” opportunity for existing shareholders to top up as the company enters into its next stage of scale-up and growth.

“With strong distribution of SPACETALK across Australia, New Zealand and the UK and the impending release of a new seniors watch, the capital raised will be used to further grow the SPACETALK business, as we near finalization of additional distribution opportunities with major telcos,” Mark said.

“I strongly encourage shareholders to participate.”

MGM Wireless shares have been in a trading halt since May 22 as the company works out a new customer agreement and navigates COVID-19-related issues. The company said on June 1 it expects to lift the trading halt by this week, but with three hours left of the trading day, shares are still locked up tight.

Shares in MGM last traded for 14 cents each.

Originally posted: https://themarketherald.com.au/mgm-wireless-asxmwr-taps-investors-for-1-5m-gears-up-to-launch-senior-smartwatch-2020-06-05/

MGM completes oversubscribed $5.5 million share placement

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MGM Wireless, the makers of the SPACETALK all-in-one children’s smartphone, watch and GPS device, have raised $5.5 million in an oversubscribed share placement with Australian investors.

Funds from the placement are earmarked to support MGM’s future growth initiatives including purchase of stock and working capital required to ramp up sales of SPACETALK and the accompanying AllMyTribe app.

The share offer was cornerstoned by a number of institutional and sophisticated investors including Thorney Investment Group, Perennial Value, Eight Investment Partners and James Spenceley.

The Australian-listed MGM Wireless (ASX:MWR) will issue approximately 1.62 million new fully paid ordinary shares at $3.40, a 9.7{4e6551b68a8c44a3218a1bdb567c0035ea59d15cd4a5ba054a936c3b201ae5d6} discount to the 10-day volume weighted average price and a 9.8{4e6551b68a8c44a3218a1bdb567c0035ea59d15cd4a5ba054a936c3b201ae5d6} discount to MGM Wireless’ last traded share price.

Canaccord Genuity (Australia) was sole bookrunner and joint lead manager of the placement with Gleneagle Securities.MGM expects settlement of the placement to take place on 26 September and new shares allotted on 27 September.

New shares under the placement will rank equally with existing ordinary shares, with 369,397 new shares to be issued within the company’s current placement capacity under listing rule 7.1 and 1,248,250 new shares under listing rule 7.1A.

In August, MGM announced it had secured a “watershed agreement” with UK-based Sky, Europe’s leading media, entertainment and telecommunications company, which has commenced selling SPACETALK through Sky Mobile on a £10 per month plan.

MGM sold 18,270 SPACETALK units in FY19, up 1,023{4e6551b68a8c44a3218a1bdb567c0035ea59d15cd4a5ba054a936c3b201ae5d6} compared with 1,785 units in its first nine months of availability, and the company anticipates sales of approximately 90,000 SPACETALK watches in FY20 as Sky accelerates its roll out and further agreements with distributors in Europe and Australia are finalised.

Once settlement of the placement is completed, the company will have approximately 14,132,147 shares on issue and MGM’ board has resolved that at the upcoming annual general meeting, it will ask shareholders to approve a share split which it believes will increase the general trading liquidity of the stock.

While the ratio of the split is still to be finalised, it is expected to be 10 new shares for every current share.

MGM Wireless CEO Mark Fortunatow said: “The success of the placement demonstrates strong support for the company from institutional and sophisticated investors who recognise the significant market opportunity for SPACETALK and its clear competitive advantage in the children’s wearables market,” said MGM Wireless CEO Mark Fortunatow.

“We are delighted to welcome new shareholders and thank existing shareholders who participated in the placement.”

Originally posted: https://www.itwire.com/listed-tech/mgm-completes-oversubscribed-$5-5-million-share-placement.html