Boku (AIM: BOKU), a leading global provider of mobile payment solutions, through a subsidiary, has entered into a new multi-year commercial agreement ("Agreement") with a subsidiary of Amazon.com, Inc. ("Amazon") for Boku Payments to supply its digital wallet and other local payment methods to Amazon.
New agreement with Amazon
The Agreement, which has an initial three year term from launch with one year renewal periods, covers the processing of payments for Amazon Prime Video subscriptions through Amazon's primevideo.com site for customers located in certain countries in South East Asia and Africa. Boku's revenue from Amazon will be based on a percentage of Prime Video transaction value that it processes.
Warrants
Concurrently, Boku has issued to Amazon warrants to subscribe for up to 11,215,142 shares of Boku's common stock ("Common Stock") representing up to 3.75% of Boku's existing issued share capital, of which 747,676 shares, or 0.25%, vested on the issuance of the warrants, and the balance vests based on Amazon achieving certain revenue targets over the next seven years. The warrant costs will be matched to and offset against revenues generated by Boku from Amazon.
The warrants are exercisable at 81.20p, which was the 30-trading day volume-weighted average price of Boku's Common Stock immediately prior to issuing the warrants. The warrants will be exercisable for ten years from the issue date. The warrants may be exercised in whole or in part by Amazon.
Jon Prideaux, Chief Executive Officer, Boku, commented:
"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."
This Announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The person responsible for arranging the release of this Announcement on behalf of the Company is Keith Butcher, Chief Financial Officer.
About Boku
Boku Inc. (AIM: BOKU) is a leading global provider of mobile payment solutions. Its Mobile First Payments Network 'M1ST' features 330+ mobile payment methods, including mobile wallets, direct carrier billing, and real-time payments schemes, reaching over 7 billion mobile payment accounts in 91 countries - all through a single integration.
Customers that trust Boku to simplify sign-up, acquire new paying users and prevent fraud include global leaders such as Amazon, Apple, Meta Platforms, Google, Microsoft, Netflix, Sony, Spotify and Tencent.
Boku Inc. was incorporated in 2008 and is headquartered in London, UK, with offices in the US, India, Brazil, China, Estonia, France, Germany, Indonesia, Japan, Singapore, Spain, Taiwan and Vietnam.
To learn more about Boku Inc., please visit: https://www.boku.com