The Flexiroam Ltd (ASX: FRX) share price has come out of a trading halt today to rocket during mid-morning trade. This comes after the mobile network operator provided an update on its recent equity raise.

At the time of writing, Flexiroam shares are swapping hands for 4.2 cents, up 23.53%

Flexiroam completes placement

One catalyst for today's surge in the Flexiroam share price could be investor appetite over its planned growth initiatives.

According to its release, Flexiroam announced it has completed a placement to raise $1.5 million with no fees payable. A number of existing professional and sophisticated investors including two large shareholders in the company participated in the placement.

The offer will see 37.5 million fully-paid ordinary shares, at a price of 4 cents apiece, allocated to the investors. This represents an 18% premium on the issued securities prior to when the company went into a trading halt on Wednesday.

Flexiroam will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The company will use the proceeds from the capital raise to fund a variety of growth opportunities. This includes:

• Developing new eSIM solutions to capture Internet of Things (IoT) demand
• Executing on the growing pipeline of Flexiroam solutions
• Hiring sales & engineering resources across Europe to increase capacity and capability
• Driving global penetration and substantial revenue expansion in FY23

The new shares are expected to be issued on the ASX on 27 October.

Flexiroam CEO, Marc Barnett commented:

This capital raise, undertaken at a premium to the last traded price, is a strong signal of the value that our large investors see in Flexiroam and their confidence in the Management team's ability to deliver on the opportunity in front of us.

We have an ambitious growth strategy across both our Travel and Solutions verticals. The funds raised provide us with additional capital to execute on our growth plans, and the premium valuation highlights the inherent value of our business relative to our market capitalisation.

Flexiroam share price summary

Adding to today's meteoric gains, Flexiroam shares have jumped around 140% in the past 12 months. The company's share price is still some way off its 52-week high of 9.6 cents reached in early February.

Based on valuation grounds, Flexiroam commands a market capitalisation of around $20.63 million, with over 503 million shares outstanding.

The post Flexiroam (ASX:FRX) share price surges 24% following cap raise appeared first on The Motley Fool Australia.

Flexiroam Ltd (ASX: FRX) shares opened 7.4% higher at 5.8 cents this morning after the company announced a joint marketing agreement to expand its partnership network. However, at the time of writing, the Flexiroam share price has retreated back to 5.4 cents, flat for the day so far.

Let's take a look at what the mobile network operator announced.

What boosted the Flexiroam share price this morning?

Investors were temporarily pushing the Flexiroam share price higher this morning after digesting the company's latest update.

According to its release, Flexiroam has signed a joint marketing agreement with Travala.com.

Founded in 2017, Travala.com is a leading cryptocurrency-based travel booking service with over 2 million properties listed worldwide.

Under the agreement, Travala.com customers will be offered a US$25 Flexiroam eSIM with a 500-megabyte global data plan when booking through the platform. In return, Flexiroam users will be provided with a US$25 Travala.com credit voucher when making any Flexiroam purchase.

Both companies will engage in promoting the deal through the use of marketing programs.

The agreement will run for an initial period of 12 months, and be limited to 100,000 customers from each of Travala.com and Flexiroam.

This follows a previous contract Flexiroam signed with buy now, pay later company Splitit Ltd (ASX: SPT) earlier this month. Flexiroam is seeking to capture some of the untapped market in Malaysia and Singapore.

Flexiroam noted that the material impact of its latest agreement is not yet known due to the variable nature of the commission. This will be calculated based on customer usage of the Travala.com booking platform which cannot be accurately predicted.

Management commentary

Flexiroam managing director Jef Ong welcomed the new partnership, saying:

We are excited to be partnering with Travala.com, a leading cryptocurrency travel agency and the agreement will allow our Flexiroam Wallet customers to gain Travala.com credits for booking flights, hotels and holiday activities. We plan to commence joint marketing campaigns with Travala.com, to promote this initiative to our customers.

The Flexiroam share price has jumped more than 300% over the past 12 months, with most of these gains coming this year. Flexiroam shares reached a 52-week high of 9.6 cents in early February.

The post Why the Flexiroam (ASX:FRX) share price opened 7% higher today appeared first on The Motley Fool Australia.

The Flexiroam Ltd (ASX: FRX) share price was up as much as 35% today. The rise coming after the mobile network operator announced a partnership allowing it to offer Buy-Now-Pay-Later (BNPL) technology.

At the time of writing, the share price did come down from today's high of 6.9 cents. It is currently sitting at 5.8 cents per share — still up 13.73% on yesterday's close.

What did Flexiroam announce?

In a statement to the ASX, Flexiroam announced its partnership with Singapore/Malaysian BNPL provider, Split. Flexiroam stated that Split will be offered as a BNPL option via its Flexiroam Wallet product. Customers will be able to make purchases over three interest-free instalments.

However, the offer is only for Malaysian and Singaporean Flexiroam mobile users. The product will be free to download into Flexiroam Wallet. Split will also charge a transaction fee on sales generated.

Words from the executives

Commenting on today's announcement, Flexiroam managing director, Jef Ong said:

The signing of our agreement with Split is an important development as the BNPL space is rapidly gaining traction in South East Asia…

He added:

[We] see the potential to offer further BNPL options to users outside of Malaysia and Singapore, in the future. Out of the 670 million people in South East Asia, only 27% have bank accounts, which means that there are hundreds of millions of unbanked and underbanked individuals who would require support using non-bank payment methods to purchase our products.

Split CEO, Dylan Tan, also gave his thoughts on today's announcement, stating:

We are delighted to be offering Split as a payment option on the Flexiroam Wallet and look forward to giving our userbase a budget-friendly way to buy mobile data.

The huge growth of BNPL shares on the ASX

Flexiroam's latest venture is another addition to the growing list of companies offering BNPL services. Afterpay Ltd (ASX: APT) share price has gone from $2.95 on its initial public offering (IPO) to nearly $120 at the time of writing.  Zip Co Ltd (ASX: Z1P) similarly, has seen remarkable growth. The share price in the company has gone 39 cents just 5 years ago to $10.45 as of writing.

Afterpay has a market capitalisation of $34.1 billion, while Zip's is $5.8 billion.

Flexiroam share price snapshot

Today's phenomenal rise is not out of the ordinary for Flexiroam. This time last year, the Flexiroam share price was sitting at 2 cents — a 155% increase. As recently as 8 February this year, shares in the telecom company were trading for as high as 9 cents each.

Flexiroam's market capitalisation is $29 million.

The post The Flexiroam (ASX: FRX) share price rockets 35% after new announcement appeared first on The Motley Fool Australia.