ZipTel’s Convo app finally makes it to the starting line
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A month ago ZipTel’s shares halved — after briefly doubling — when it was forced to retract a “landmark” revenue-sharing deal with British messaging app maker Space Digital Media.
On Monday ZipTel started down the long road of redemption, with the “soft-launch” of Space Digital’s Convo app — complete with ZipTel’s technology.
This time round however, investors have been more cautious.
On Monday ZipTel’s shares fell 5 per cent to 2.1c following the announcement.
In the time since, the company’s controversial founder Keaton Wallace was pushed out on claims he had breached its code of conduct for trades during a closed period.
In a ‘soft’ launch of the product, SDM plans to gather user data and generate a strategic plan for a full launch later in Q4 this year.
ZipTel stands to receive royalties of 10 to 20 per cent of Convo App revenue for the next 10 years in return for integrating its technology into the app.
The Convo App is a cross-platform mobile messaging app which allows users to call, send messages, share photographs, documents and audio recordings at no cost and with only a basic data connection.
The app is to be initially rolled out to key Asian and African markets of India, Nigeria and South Africa.
ZipTel made a total loss of $650,000 this year, down from $14 million the year before.
The company made $200,000 and had $1.2 million in the bank at the end of the period.