By Joe Hoppe
Boku Inc. shares rose Tuesday after it said it has entered a new multi-year commercial agreement with an Amazon.com Inc. subsidiary to supply its digital wallet and other local payment methods to Amazon.
Shares at 0727 GMT were up 8.4 pence, or 11% at 85.4 pence.
The London-listed mobile-payment and identity-verification company said that the agreement–which has a three-year term from launch, with a one-year renewal period–covers the processing of payments for Amazon Prime Video subscriptions for customers located in certain South East Asian and African counties.
Revenue for Boku from Amazon will be based on the percentage of Prime Video transaction value that it processes.
At the same time, Boku has issued Amazon warrant to subscribe for up to 11.2 million shares in the company, representing up to 3.75% of Boku’s existing share capital. Some 747,676 shares were vested on the warrant issue, and the balance vests are based on Amazon achieving certain revenue targets over the next seven years.
The warrants are exercisable at 81.2 pence, the 30-trading day volume weighted average price of Boku’s shares immediately prior to issuing the warrants, and are exercisable for 10 years from issue.
Write to Joe Hoppe at joseph.hoppe@wsj.com
