Tech: This company with shares worth 1/10th of a cent just signed a Fox Sports deal
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Syntonic (ASX:SYT), an American-based telco services provider, is one of the smallest companies on the ASX: it has a market cap of just $6.6 million, and its shares are worth just one-tenth of a cent.
Nonetheless, it has just signed a deal with Fox Sports’ Latin American arm, for which it went into a trading halt on September 6; it then went into trading suspension when the announcement wasn’t forthcoming by September 10.
That suspension was extended four times. Although the deal was finally announced today, Syntonic has again extended the trading suspension, as it is now due to release an announcement about a financial restructuring.
The company is in a healthier position than its languishing share price suggests, however.
FY19 revenue grew 312 per cent to $7.1 million, driven by its Brazil business and new carrier deployments, though its full-year loss increased 41 per cent to $7.6 million. It has $1.4 million in the bank, down from $4.9 million in FY18.
The Fox Sports Latin American deal will see the pay TV sports broadcaster use Syntonic’s revenue generation platform to distribute and sell Fox Gol mobile content in Brazil and Mexico.
The Fox Gol application enables Brazilian and Mexican soccer fans to follow their favourite teams and leagues, through a subscription package that gives them access to video and other curated content. The service currently in Brazil has approximately 700,000 active users including circa 200,000 subscribers.
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