Corporate: Rewardle has found a new love with coffee

Marketing and payments penny stock Rewardle Holdings (ASX:RXH) is getting into the coffee game after formalising a partnership with Beanhunter.

Rewardle told investors today that it has entered into an “options deed” with Melbourne-based Beanhunter that would give it the option to acquire about 51 per cent of the company for just under $180,000.

Beanhunter uses crowd sourced ratings and reviews to help users find new coffee experiences.

The company currently lists over 33,000 operating cafes, about 200,000 reviews and attracts over 200,000 user sessions a month across its website and mobile apps.

Rewardle says its operations are “highly complementary” to those of Beanhunter and it can help the coffee specialist slash its operating costs and grow its revenue.

In the meantime though, Rewardle is working to keep the lights on for its own business by significantly cutting underlying operating costs and finding new Merchant revenue streams.

The company had $153,000 in cash and $5,000 worth of outstanding debt at the end of the September quarter. It flagged a cash burn of $381,000 for the final quarter of 2019.

Rewardle did, however, secure an R&D rebate of $805,727 and a loan of $596,818 to help keep it going.

“Further opportunities for incremental improvements and cost reductions have been identified and are being implemented across the business,” the company said.

It also plans to launch new products and services in early 2020 using a “new sales approach” it has developed and refined in recent months.

Rewardle expects the new services to deliver “superior margins and cashflow” if sales are successful.

In other ASX corporate news today:

There were several board moves announced just before the new year.

Israel-based Shekel Brainweigh (ASX:SBW) told investors Dave Sharma was stepping down as non-executive chairman because his Parliamentary duties are increasingly requiring more of his time. Current non-executive director Tzipi Avioz will act as interim Chairman until a replacement is found.

Young Yu and Wayne Loxton have quit the board of Protean Energy (ASX:POW), while company secretary Matthew Foy has stepped into the role of non-executive director.

Kazakhstan Potash (ASX:KPC) revealed Yu Sun had resigned as executive director for personal reasons.

And finally Clive Brown has ended his tenure as a director of phosphate explorer CI Resources (ASX:CII).