Engage Mobility (OTCCB:ENGA) is a provider of mobile marketing technologies and solutions that help businesses acquire new customers and keep existing customers engaged. Reasons for tracking:
- Mobile marketing is a hot sector.
- Just launched its mobile marketing platform.
- Spinning an opinion that business model is based on a recurring revenue fee structure.
“The Mobile Engagement System integrates an augmented reality browser and content with our proprietary cloud based mobile video delivery system, a mobile customer relationship manager and our Dynamic Data platform to create a full solution for business to market their products in the mobile environment. The Mobile Engagement System is sold to businesses under a “user based” model — so that the business pays us a monthly user fee based on the number of “engaged” users in their database at any given time.”
- The company recently announced that it transitioned from a development stage company to a revenue generating operation (reported revenues of $326,000 for its Q1 ended Dec 31, 2013).
- Claims that it inked a JV agreement with one of the largest Chinese media companies in the world.
“…announced today that it has finalized a Joint Venture Agreement with Xinhua Ruide Network Technology Company for the launch of the Engage Mobile Engagement System in China. Engage has completed initial development of the Chinese version of the system, and delivered the initial platform to its joint venture partners. The partnership plans release and full roll out of the Chinese Mobile Engagement System throughout China in the coming weeks. Xinhua Ruide is a subsidiary of Datang Telecom, Technology and Industry Group, Ltd., a Chinese state owned company that is one of the largest media companies in the world.”
- The positive news flow combined and reasonable share count of about 20 million combined with the China appeal (back in vogue) could attract momentum players.
- Claims to have access to a customer database of over 40 million consumers and businesses.
- Very preliminary due diligence from our on the ground team has confirmed the existence of the JV agreement.
- The company will have to raise up to $7 million by May 2014 to execute its short-term needs.