It’s man overboard for Marine Rescue as Mobilarm morphs into music
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Mobilarm is up for a seachange – this week announcing a long-awaited pivot from marine safety equipment to digital music attribution.
The Perth-based company’s (ASX:MBO) main business, Marine Rescue Technologies, provides emergency beacons and safety equipment to help rescue those lost at sea.
But back in May 2016, Mobilarm invested in soon-to-be-launched music identification service Jaxsta as a means of diversifying.
Jaxsta has built a database of music credits (“from radio to roadies, artists to producers, photographers to video directors”) that it hopes will become the music industry’s official record of data.
Mobilarm initially put its foot on a 10 per cent stake, with potential to grow to 40 per cent.
At the time the ASX queried the deal, voicing concerns that an acquisition of that size would constitute a change in the nature of Mobilarm’s operations.
Now it’s going all-in, with a plan to divest the Marine Rescue business.
“Our Marine Rescue Technologies operation will be going to a business where it will have leverage to expand on its potential and the company can focus on the Jaxsta business where we see a better opportunity for growth for our shareholders,” chief Ken Gaunt said on Thursday.
Mobilarm plans to raise capital to fund the transition — although that will be contingent on shareholder approval.
“We have been working with many leaders in the music industry and the need for Jaxsta is present here and now and we are ready to deliver,” Jaxsta chief Jacqui Schoorni said.
Mobilarm shares last traded at 2.1c in December, and were expected to recommence on the release of an announcement updating Jaxsta’s business operations next week.
The company reported $1.1 million in customer receipts for the last quarter, an increase of 30 per cent on the prior corresponding period.
It reported $341,000 in the bank at the end of the period, with outgoings of $1.4 million.