Boku inks three-year deal with Amazon
By Josh White
Date: Tuesday 20 Sep 2022
(Sharecast News) - Mobile payment technology company Boku has entered into a new multi-year commercial agreement with a subsidiary of Amazon, it announced on Tuesday, for Boku Payments to supply its digital wallet and other local payment methods to the e-commerce behemoth.
The AIM-traded company said the agreement, which had an initial three-year term from launch with one-year renewal periods, would cover the processing of payments for Amazon Prime Video subscriptions for customers located in parts of southeast Asia and Africa.
It said its revenue from Amazon would be based on a percentage of the Prime Video transaction value processed.
At the same time, Boku said it had issued warrants to subscribe for up to 11,215,142 shares of its common stock to Amazon, representing up to 3.75% of its issued share capital, of which 747,676 shares - or 0.25% - was vested on the issue of the warrants, and the balance to be vested based on Amazon achieving certain revenue targets over the next seven years.
The warrant costs would be matched to, and offset against, revenues generated by Boku from Amazon.
It said the warrants would be exercisable at 81.2p, being the 30-trading day volume-weighted average price of its common stock immediately before issuing the warrants.
They would be exercisable for 10 years from the issue date, and could be exercised in whole or in part by Amazon.
"We are delighted to have entered into this new agreement with Amazon which demonstrates that one of the world's most well-known brands has chosen Boku to process certain digital wallet payments, reinforcing Boku's strategic move into these areas," said chief executive officer Jon Prideaux.
At 0924 BST, shares in Boku were up 13.31% at 87.25p.
Reporting by Josh White at Sharecast.com.
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