Mobile Embrace to buy cashless pub app Clipp
Cashless hospitality app Clipp is looking to extend its presence in Australia’s bars and clubs, announcing a new $4.69 million investment that may result in a buyout.
The funding comes from Mobile Embrace, an ASX-listed mobile payments company, which has acquired a 31 per cent stake in Clipp with the option to take it to 72 per cent.
The deal will see Mobile Embrace acquire 31 per cent of Clipp from existing shareholders through the issue of 4.59 million new Mobile Embrace shares at 26¢ per share.
Clipp has also been issued a $3.5 million convertible note which will see a quarterly drawdown of funds over the next 18 months. Mobile Embrace also has the option ton convert any drawn down funds into equity, and if fully drawn and converted into ordinary Clipp shares Mobile Embrace would effectively control Clipp and own 72 per cent of the company.
Mobile Embrace CEO Chris Thorpe said, “For some time we have been assessing opportunities in line with our growth strategy that can achieve far greater scale by being part of MBE, and most importantly, deliver to MBE an additional disrupritve payments platform in its own right that we can expand and grow.”
“Clipp fits all these criteria and we believe the business has a great deal of unlocked value.”
Clipp, launched in 2013, is now accepted by 570 hotels and bars across the countryand boasts over 20,000 users.
It enables customers to open a bar tab via the app to purchase food and rinks, and allows unique targeted advertising to customers based on prior purchase behaviour.
“We are very pleased to have secured this funding from Mobile Embrace and we look forward to accelerating the already rapid growth of Clipp,” Clipp co-founder Greg Taylor said.
“From a $1.5 million investment in 2013 Clipp has achieved phenomenal success and the investment from MBE will enable us to build on this strong foundation.”
He said some venues are moving away from credit cards to become exclusive ‘Clipp-only’ venues.
Source: The Australian - 11th June 2015
