- New York-based institutional fund manager The Lind Partners has reached an investment agreement with mobile device technology innovator FingerMotion Inc. to provide FingerMotion $4 million that will advance its initiatives
- FingerMotion is focused on varied initiatives for serving China’s massive mobile device user market, its top priority being the rollout of an AppleCare-similar device protection plan the company expects to be popular with users
- Company CEO Martin Shen has stated the protection plan service has the highest potential to yield returns on capital investment in the shortest amount of time
- China has more than 450 million 5G mobile phone users and their need to upgrade their devices and services holds the key to FingerMotion’s strategy
FingerMotion (NASDAQ: FNGR), a U.S.-based company currently focused on serving the huge market for mobile phone-related technologies on the Asian continent, has received an agreement for the infusion of new capital in its enterprise and is preparing to utilize it to drive quick revenue growth.
The funding agreement with New York-based institutional fund manager The Lind Partners to obtain gross proceeds of $4 million through an investment by the Lind Global Fund II, LP will help FingerMotion advance various growth strategies in return for a $4.8 million senior convertible note (which includes a 20 percent coupon) and a common stock purchase warrant for buying up to nearly 3.5 million shares of common stock of the company at a select price.
“The proceeds from this Investment will be primarily allocated across multiple high-margin and high-growth opportunity initiatives currently underway. In particular, the Company’s highest priority initiative is the full-scale nationwide rollout of its mobile device protection business in China,” CEO Martin Shen stated in the company’s announcement (https://nnw.fm/OYktU). “This vertical is expected to yield the highest return on capital investment in the shortest amount of time, both strengthening our balance sheet and enabling us to experience transformational revenue growth over the next 12-24 months.”
The device protection solution mirrors Apple’s AppleCare service in the Chinese market, which FingerMotion expects to be received by consumers as an innovative and needed product, and one that will be able to pervade the market thanks to FingerMotion’s success in partnering with telecommunications giants China Unicom and China Mobile to reach a wide base of mobile users.
Global Times reported there are now more than 450 million 5G mobile phone users in China — the primary target for device protection as they upgrade their products. The report also states all prefecture-level cities have implemented optical network broadband and that the networks have more than 61 million users (https://nnw.fm/xKNUA).
The Lind fund’s investment note will have a 24-month maturity.
In addition to the mobile device protection service, FingerMotion has been a significant provider of top-up and SMS services and is developing a big data service for reinsurance providers to help assess consumer risk.
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://nnw.fm/FNGR
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