Mysquare : Placing, Joint Broker and Performance Update

(30.10.2018)

MySQUAR Limited ('MySQUAR' or the 'Company')

Placing, Joint Broker and Performance Update

MySQUAR, the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, is pleased to announce that it has raised GBP 600,000, before expenses, by way of a placing of 171,428,571 ordinary shares of no par value ('Placing Shares') in the share capital of the Company at a price of 0.35p pence per share ('Placing Price').

The Company is also pleased to update the market on its Key Performance Indicator ('KPI') reporting and provide further details on trading in the year ended 30th June 2018 following the trading update announced by the Company on 5th October 2018.

Placing and Appointment of Joint Broker

The Company has raised GBP 600,000 before expenses, by way of a placing of new ordinary shares in the Company arranged by SVS Securities plc.

The Company will utilise the funds to fund the marketing and promotion of its mobile money product, working capital and general corporate expenses. To date, the Company has not drawn on the available loan facility of $1m provided by Rising Dragon Singapore Pte Ltd.

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued Shares, to be admitted to trading on AIM. It is expected that Admission will become effective and that trading in the Placing Shares will commence on or around 5 November 2018.

SVS Securities plc has been appointed Joint Broker to the Company with immediate effect.

KPI Reporting

The Board has reviewed the KPIs reported to the market in light of the development of the Company's product set. Following that review, the Company reports below those KPIs now considered by the Board most appropriate to its three existing divisions (Mobile Games, Media and Mobile apps and Business Advisory) and its new Mobile Money Division following the acquisition of MyPay Myanmar Limited.

The Company will cease to report registered users - being individuals who have downloaded a game or an app and created a user account - as it considers active users within each division a better metric.

The Board believes the KPI's adopted by the Company and reported today offer a more precise reflection of the Company's underlying performance and which are in line with industry standards. These KPIs relate to the first three months of the Company's current financial year to 30th September 2018 and, for comparison purposes, for the first and second halves of the year ended 30th June 2018. The Company intends that these KPIs will be reported on a quarterly basis.

The Company defines its KPIs as follows.

As is common in the online media and games industry a single user may have more than one registered account. The Company's best estimate of current unique registered users is 6m to 7m.

MAUs of the Company's games benefitted in H1 2018 from the popularity of the 'Lucky Wingabar' suite of games but this tailed off during H2 2018. MAUs picked up again in Q1 2019 following the successful launch of 'Age of Glory'. Nevertheless, ARPPU grew steadily during 2018 and continues to do so as the Company has focussed its marketing efforts on attracting paying users and not merely free-to-play gamers. MAUs of the Company's flagship product 'Mingalarbar Morning' continued to grow during 2018 and Q1 2019 aided by greater local focus of content following the relocation of editorial staff from Vietnam to Myanmar.

Revenue Review

Further to the trading update made on 5th October 2018, the Company can provide the following revenue breakdown:

There was no revenue from the Mobile Money division during these periods.

Mobile Games Division
A total of seven games were 'live' in FY2018 (FY2017: seven games). Three new games were launched in FY2018 ('Land of Magic', 'Fish Hunter 3D - KoTaNgar' and 'Wushu King') which replaced three games that had run their course in revenue generation FY2017 ('Destroyer King', 'Chakra Ninja' and 'My Combo'). These three newly launched games have proved popular and together with 'MyFish' and 'Lucky Wingabar' have largely contributed to the doubling of revenue in FY2018.

Media & Mobile Apps Division
The revenue increase from media and mobile apps in FY2018 was due largely to CallHome, our VOIP service. We reported in the Company's interim results for the period to 31 December 2017 that CallHome was withdrawn from the market as a stand-alone product. Integrating CallHome with Marketplace, (the classifieds advertising section in Mingalarbar Morning) proved not to be viable and a provision and impairment of intangible assets amounting to a total of USD203,323 is expected to be made in the accounts to 30 June 2018 in respect of this product.

The Marketplace feature of Mingalarbar Morning currently has 62 sellers selling 953 items on the site. Currently, the Marketplace continues to operate on a free to use basis to promotes page views and session length for Mingalarbar Morning.

Revenues generated under the recently announced agreement to sell advertising on WeChat will be reported in the Media and Mobile Apps Division going forward.

Mobile Money Division
Following full launch of the Company's mobile money platform on 6 October 2018, the Company will provide details of app downloads, MAUs, User Acquisition Cost and ARRPU for the Mobile Money division in its next quarterly KPI report to the market. Revenue in the current quarter (ended 31 December 2018) is unlikely to be material however the Company is expecting a steady ramp up of revenues from this division during the calendar year 2019.

The application to the Central Bank of Myanmar for a payments licence is proceeding albeit at a pace slower than initially anticipated. The Company remains confident in the licence being granted. The grant of a licence is expected to increase the achievable margins on payments transactions and enhance our credibility within Myanmar.

Business Advisory Division
The Business Advisory division provides app development for third parties service providers. During 2018, the Company has largely focussed on the development of its in-house apps and has not sought to replace advisory contracts as they expired.

As disclosed in the Trading Update on 5 Oct 2018, the loss for FY2018 is expected to increase substantially as a result of the acquisition costs of MyPay Myanmar, amortisation charges and the one-off costs of staff rationalisation, management changes and fundraising expenses. The Company is focussed on reducing costs and increasing efficiency going forward.

Stephen Chong, Interim CEO, commented:

'We are grateful for the support shown by the new investors in the Company and hope that our new reporting of KPIs will allow a greater understanding of the progress being made to cement the Company's position as a leading Myanmar-language social media, entertainment and payments platform. The management team is focussed on developing our new agreement to sell advertising on WeChat and we are seeking to rapidly grow our Mobile Money offering whilst managing costs carefully and nurturing our existing user base'

Total Voting Rights

The Company hereby announces that following Admission it will have 1,089,803,643 Ordinary Shares in issue, none of which are held in Treasury. Therefore, the total number of voting rights in the Company is 1,089,803,643.

The above figure of 1,089,803,643 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the requirements of the Company's articles of association.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information:

MySQUAR Limited	Contact
Stephen Chong (Interim Chief Executive)	Tel: [phone]

SP Angel Corporate Finance LLP	Contact
Nominated Adviser & Joint Broker Stuart Gledhill / Soltan Tagiev	Tel: [phone]

Daniel Stewart & Company Plc	Contact
Joint Broker David Lawman / Jon Levinson / Daphne Zhang	Tel: [phone]

SVS Securities plc	Contact
Joint Broker Tom Curran	Tel: [phone]

Public Relations	Contact
Damien McCrystal	Tel: [phone] [e-mail]

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