Macromac plc Investment in Skyztree Sdn Bhd
The Board of Macromac (AIM: MACC) is pleased to announce that Macromac Venture Ltd ("MVL") has entered into a binding share subscription agreement with Skyztree Sdn Bhd ("Skyztree"), a mobile applications development business based in Malaysia, pursuant to which MVL has committed to invest a total of RM675,000 (equivalent to approximately £120,459*) in cash in Skyztree. This investment will give MVL a 25% stake in Skyztree. All conditions precedent in the subscription agreement have been met and the board of Macromac expect to complete the investment in Skyztree shortly.
MVL is a wholly owned subsidiary of the Group recently established to make strategic investments in early stage businesses in areas complementary to Macromac's existing business operations.
Skyztree, based in Kuala Lumpur, Malaysia, is a recently formed private limited company with its main business being the development of mobile applications. Skyztree is currently pre-revenue and for the period from incorporation on 17 December 2014 to 30 April 2015, incurred a net loss of RM251,041 (equivalent to £44,800*).
Skyztree recently launched its first mobile application, First Smile, a parental application, in beta version for Android phones. First Smile is a mobile application designed for parents to capture, organise and share precious memories of their babies. First Smile simplifies saving memories of their babies and turns them into digital memories, while making it easier for them to be shared with family and friends. Photos within First Smile are organised in a chronological order, allowing parents to revisit baby and toddlers memories again in the future.
The board of Macromac understand that Skyztree intends to launch this mobile app across a number of countries, with Skyztree initially focusing its marketing efforts in the United States, Canada and the United Kingdom. Macromac intend to also be indirectly involved in the advertising and promotion of this mobile application through their existing mobile messaging solutions.
The investment in Skyztree will benefit MVL, and ultimately Macromac, from the growth of Skyztree as it achieves its goal of developing mobile applications which are accepted, popular and highly used by end users. The investment will also enable Macromac to potentially have access to a team of skilled and capable programmers and designers at Skyztree.
The board of directors of Skyztree consists of Chua Soon Kee and Lew Wai Ching (sister of Michael Lew, Chief Executive Officer ("CEO") of Macromac). Lew Wai Ching currently owns 2.6% of the current issued share capital of Skyztree.
Following the completion of the investment, Michael Lew, CEO of Macromac, will be appointed as a representative to the board of directors of Skyztree.
Further announcements will be made as appropriate.
Michael Lew, Chief Executive Officer of Macromac, commented:
"Macromac is pleased to be involved in a mobile applications development company like Skyztree, where it is believed that the market for mobile applications will continue to grow. The global mobile applications industry is rapidly growing and according to eMarketer (2014), it is expected that 2.04 billion people will own and use smartphones monthly by the end of 2015, and this number will reach 2.73 billion smartphone users by the end of 2018.
In addition, this investment allows us to gain access to a new team, thus enlarging our access to different technical skills and capabilities as well as new ideas. Macromac will also take this opportunity to provide guidance and assistance to enable Skyztree to fulfil its potential."