Synchronica signs letter of intent and unveils JV plans

Mobile phone messaging technology group Synchronica has signed a letter of intent with technology developer Intertainment Media to intergrate Synchronica's messaging platform, Mobile Gateway, with Intertainment Media's Ortsbo experiential language technology.

The move has been undertaken in a bid to provide its users with real-time translation between more than 50 languages potentially across Synchronica's growing client base of over 100 mobile operators and device manufacturers around the world.

In addition, Synchronica will enter a joint venture agreement with Intertainment Media and its subsidiary Ortsbo, in which the parties will license their respective intellectual properties to a new subsidiary. The subsidiary, which will be jointly-owned by both parties, will allow Synchronica and Intertainment Media to further develop each other's products.

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As part of the transaction, Intertainment Media will, subject to Synchronica shareholder approval, invest up to C$10m in Synchronica, at a minimum price of 0.16p per unit. Each unit will comprise one ordinary Synchronica share, plus one ordinary share warrant, exercisable at C$0.40 per share, at any time within two years of issue.

Synchronica's Chief Executive Officer Angus Dent said: "It will allow us to immediately enrich Mobile Gateway with real-time conversational translation services, which will really appeal to our new and existing customers."

Synchronica's share price rose 0.97% to 13.00p by 13:23.

NR