MOBICOM Corp. Announces Formation of Strategic Alliance in Korea – Subsidiary, Mobicom Korea, Sells 50% Equity Interest –...
November 14 2008 - 5:05PM
Business Wire
MOBICOM Corporation (OTCBB:MBIC.OB) today announced that its Korean
subsidiary, Mobicom Korea, has sold shares of its common stock
representing a 50% ownership interest to FAS Alliances Inc., a
Korean based investment company. Mobicom Corporation also announced
an operating loss for the quarter ended September 30, 2008. FAS
Alliances Inc. has invested $.8 million for a 50% interest in
Mobicom Korea. In addition, FAS Alliances has committed to invest
an additional $16.5 million in Mobicom Korea over the next sixteen
months, subject to Mobicom Korea achieving revenue and net income
targets for the years ending 2008 and 2009. FAS Alliances Inc. was
founded by Mr. Ki-Young Sohn, a former Senior Director of
PricewaterhouseCoopers Inc. and the founder of Alliance Technology
in the United States. �We are pleased to announced the relationship
with FAS Alliances, " said Kris Ahn the CEO and President of
Mobicom Korea. "In addition to the capital investment, we believe
that our relationship with FAS Alliances' deep relationships in the
Asian market will provide strategic support and enhance the revenue
of Mobicom Korea.� Commenting on the FAS Alliances Inc. transaction
and the Mobicom Corporation results for the quarter ended September
30, 2008, Michael Levinsohn, CEO of Mobicom Corporation said �The
economy in Korea is really tough right now. Most of our clients in
Korea are financial institutions and retailers, which has led to a
dramatic slowdown in business for Mobicom Korea in the third
quarter have been delayed until at least early 2009. Bringing in a
strategic partner who has capital and access to new clients makes
absolute sense at this time. The Korean Stock exchange is down 40%
this year and the Korean Won is down 31% against the US dollar.
Given that we report in US dollars, the macroeconomic impact on our
revenue and profits is going to be significant unless we secure
additional capital and growth opportunities.� Levinsohn went on to
say, �While we acknowledge that we are diluting our shareholding in
Mobicom Korea, we believe that this is in the best interests of
both the company and our shareholders.� Mobicom Corporation advised
that if it does not meet its operating plan and the minimum
requirements for additional investment from FAS Alliances, it will
have to attempt to raise additional capital or significantly change
the operating plan for Mobicom Korea. Mobicom Corporation�s net
revenues were $346,507 for the three months ended September 30,
2008, compared to $49,904 for the same period in 2007, an increase
of 594%. Nine month net revenues for the nine months ended
September 30, 2008 were $3,210,805 compared to $115,214 in the same
period in 2007, an increase of 2,787%. The net loss for the three
months ended September 30, 2008 was $1,025,162 compared to a net
loss of $265,315, for the same period in 2007. The fully diluted
loss per share based on 52,222,034 shares outstanding was $0.02 per
share for the quarter and $0.07 for the nine months to September
30, 2008. Commenting on the results, Mobicom Corporation CEO,
Michael Levinsohn, said, �We are obviously disappointed with the
significant decline in the performance of Mobicom Korea for the
period. While we expect the market in Korea to be very challenging
over the next several quarters, we are optimistic that the
introduction of FAS Alliances Inc. as a strategic partner in the
business will provide us with the capital base to sustain the
business.� About MOBICOM Corporation MOBICOM Corporation (MBIC.OB)
is focused on the fast growing mobile phone industry. According to
available industry data, there are now approximately 3.2 billion
cell phones in use worldwide and more than 1.3 billion Internet
connections. With the convergence of technologies and the ability
to target individual subscribers, transaction based applications
are expected to grow exponentially for the foreseeable future.
Because of limited growth in Average Revenue Per User (ARPU),
Mobile network operators worldwide have identified data as a high
growth area and in particular user generated applications. MOBICOM
Korea, (www.mobicomkorea.com) is a leader in the provision of
mobile marketing solutions for both mobile phone networks and brand
owners who wish to target customers in a meaningful and measurable
way. The acquisition of MOBICOM Korea by MOBICOM Corporation in
December 2007 was aimed at providing access to a number of leading
companies in the Korean market. Mobicom Korea, under the AIMMS
brand, has provided database marketing, membership rewards systems,
CRM systems and mobile marketing services to inter alia Dongbu
Group, LG, CJ Corp (Jeil), Johnson and Johnson, Procter and Gamble,
Microsoft, LG Telecom, Citibank, HSBC, American Express, Shinhan
Life, Kookmin Card, Miliore, Missa, LG Card, Webtour, Pizza Hut,
HanilWorld, Grand Korea Leisure and Sport ToTo. FORWARD LOOKING
STATEMENT: This press release contains forward-looking statements,
including expected industry patterns and other financial and
business results that involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ
materially from results expressed or implied by this press release.
Such risk factors include, among others: whether MOBICOM
Corporation can successfully execute its operating plan; the
sustainability of recent growth rates in the cell phone market; the
positioning of MOBICOM Corporation products in the market; ability
to integrate acquired companies and technology; ability to retain
key employees; ability to successfully combine product offerings
and customer acceptance of combined products; general market
conditions, fluctuations in currency exchange rates, changes to
operating systems and product strategy by vendors of operating
systems; and whether MOBICOM Korea can successfully develop new
products and the degree to which these gain market acceptance.
Actual results may differ materially from those contained in the
forward-looking statements in this press release. MOBICOM
Corporation and MOBICOM Korea do not undertake any obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
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